The Federal Government has finally released details of the intended superannuation changes. (Click here for a summary of the changes)
Whilst the changes don’t affect as many people as the rumour mill made out before the policy release, it leaves the question open whether the tax concessions for superannuation will be eroded over time. History shows that once a generous concession is narrowed down, future cuts are likely. Despite this risk superannuation is still an attractive retirement savings option as the tax rate is capped at 15% which is well below the marginal tax rate of most individuals. It remains to be seen if the proposed changes will in fact be implemented or if the possible new federal leadership will overturn these measures. Call us if you want to discuss this or any other superannuation matters!