High Earners over $300K will pay 30% tax in Super, less incentive to contribute?

Another budget,

Super Saving Government Bill Shorten Law nation's retirement savings - High Earners over $300K will pay 30% tax in Super, less incentive to contribute

Extra Super Tax on Earners over $300K

another round of changes to the super system. Last week the government announced it would: Levy an extra 15 per cent on concessional contributions for people earning $300,000 or more; Defer for two years new concessional contribution caps for the over-50s with less than $500,000 in super. This means everyone will be subject to the general cap of $25,000, compared with the $50,000 that applies now for those aged 50 and older. Both changes will come in from July 1, so those affected will need to act quickly to review their super strategies and ensure they’re still getting benefits from the system. Here are eight things you should be doing now to beat the changes.
GO TO ARTICLE Annette Sampson, The Sydney Morning Herald

Contributing to superannuation is looking less attractive for high income earners following the changes in last week’s Federal Budget, according to Tupicoffs adviser Neil Kendall. For the 2012-13 financial year, clients earning over $300,000 will see the tax payable on their super contributions doubled from 15 to 30 per cent; and the concessional contributions cap has been halved to $25,000 for those aged over 50.Effectively, the maximum benefit for contributing to super will be reduced from $15,000 to $3,750 for 50-year-olds earning over $300,000, said Kendall. Tim Stewart, Money Management


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