Jones confirms super tax concessions to high balance holders on the table
The Government has confirmed that superannuation tax concessions for high balance holders is definitely on the agenda in the lead-up to next year’s May Budget.
The Assistant Treasurer and Minister for Financial Services, Stephen Jones made this clear addressing a superannuation and wealth summit in Sydney today.
In doing so, he cited three self-managed superannuation funds with more than $100 million in assets with the largest having $400 million in assets.
Jones said that if the objective of superannuation was to provide tax-preferred estate planning, then the system had a pretty good job.
However, he said that it had been estimated that the concession taxation of funds such as those he had cited could fund the real cost to the object of 3.1 full age pensions.
Jones also told the Financial Review summit that the Government would be looking to legislate an objective for superannuation.
Yes, there are legacy SMSF’s that have large balances. The coalition government made a significant change in 2017, which essentially limited the future of SMSF balances to a capital amount of around $2m. There will always be the 1% that achieves exceptional growth because of investment decisions, but why should they be penalised.
I really hope the Labor government does not introduce even more restrictions on the capital amount within super, when the last changes were only 5 years ago, and need at least another 10 years to equalise out.
If that is the case best shift some monies into a guaranteed life time pension to avoid any proposed penalties.