01 May 1313 Changes to the superannuation contribution concession for high income earners
The Government has released for public consultation an exposure draft for Tax Laws Amendment (Sustaining the Superannuation Contribution Concession) Bill 2013 and the accompanying explanatory memorandum.
Treasury says that "(v)ery high income earners receive a higher superannuation tax concession than average income earners. The changes contained in the Bill will effectively ensure that very high income earners will receive a superannuation concession on their contributions more closely in line with the concession received by average income earners. This will improve the fairness of the taxation of the superannuation system."
Broadly, individuals with combined income and concessionally-taxed contributions exceeding $300,000 in an income year will be subject to tax at 15% on those contributions exceeding the $300,000 threshold.
The exposure draft legislation will amend the ITAA1997, the Income Tax (Transitional Provisions) Act 1997 and the Taxation Administration Act 1953. It will also create a new Act, the Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013, which will reduce the effective tax concession that certain individuals with higher incomes receive.
These amendments give effect to the 2012-13 Budget measure, 'Superannuation - reduction of higher tax concession for contributions of very high income earners', announced by the Minister for Financial Services and Superannuation on 8 May 2012.
The closing date for submissions is Wednesday 8 May 2013.