The Federal budget did not read out any changes in Negative Gearing or Capital Gains tax, did not announce cuts for the housing sectors, proposed to help the baby boomers downsize and largely left Superannuation untouched. Phil Thomson for The Canberra Times says that the Federal budget has proposed (only proposed) a lot on the Superannuation reforms front; however anything may only be implemented once the legislation become full-fledged laws.
From July 2013, concessional contributions to Super to rise from $25,000 to $35,000 annually for citizens over 60.
From July 2014, same slab may be availed by people over 50.
July 2012 onwards, individuals with annual earning packets over $300,000 will need to pay 30% Super contributions tax on concessional contributions.
July 2013 onwards, individuals will have the liberty to withdraw concessional Super contribution amounts over the newly imposed limits. Instead of having to pay high penalty rates, they will only need to cough out taxes at MTR.
July 2014 onwards, earnings showed on assets supporting Superannuation won’t be taxed uptil $100,000 annually. Amount over the said figure will be taxed at 15%.
Though the high income slab will feel a little displeased about the additional taxes, there is enough pleasure to be drawn from the investment incentives that the Super reforms propose. You can read the full article here.
Superannuation rate to reach 12% till 2020
I think that The Superannuation reform which would still be most well-directed towards property investment is the proposed hike of rate from 9% to 12%. It will slowly be increased over the next 7 years but it would certainly mean a higher borrowing capacity against the super funds. Off the note, allowing withdrawal of excess concessional Super contribution at Marginal Tax Rate (with a formal interest) may put undue pressure on the government.
Are you planning to use your Super funds for buying a house?
Superannuation reforms geared towards more property investment
Though the high income slab will feel a little displeased about the additional taxes, there is enough pleasure to be drawn from the investment incentives that the Super reforms propose. You can read the full article here.
Superannuation rate to reach 12% till 2020
I think that The Superannuation reform which would still be most well-directed towards property investment is the proposed hike of rate from 9% to 12%. It will slowly be increased over the next 7 years but it would certainly mean a higher borrowing capacity against the super funds. Off the note, allowing withdrawal of excess concessional Super contribution at Marginal Tax Rate (with a formal interest) may put undue pressure on the government.
Are you planning to use your Super funds for buying a house?
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