Miscellaneous 2006

A Critical Analysis of the Proposed Changes to Superannuation Taxation

Source: Australian Tax Forum Journal Article

Published Date: 1 Sep 2006


This paper discusses four issues in respect of the changes that are to be made to the way that superannuation is to be taxed.

First, the changes dilute the connection between the tax concessions given for saving for retirement and the requirement that the accumulated funds be used for that purpose.

Secondly, the rules that limit the maximum amount that can be accumulated in the tax preferred environment of a superannuation fund are being removed and replaced with rules restricting contributions. To the extent that the former rules introduced equity between taxpayers, this aspect is absent in the new limitations.

Thirdly, claims made about the simplification effect of the new rules are challenged.

Finally, the taxation of employer termination payments will no longer be integrated with superannuation fund payments. This produces a harsher result and alternative treatment is suggested.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2006

Share this page