Latest News

Hot Issues
spacer
2025 Tax Planning Guide Part 2
spacer
From 1 July 2025 ATO Interest is no longer tax deductible
spacer
SME confidence and conditions see uptick over Q1 2025, survey reveals
spacer
Depreciation expert urges property investors to leverage tax depreciation
spacer
Buy a business
spacer
Upskilling and self-education costs
spacer
How secure is your super account?
spacer
Freshwater Resources by Country 2025
spacer
Why Might a Lease Dispute Occur?
spacer
2025 Tax Planning Guide Part 1
spacer
$20,000 instant asset write-off
spacer
New Bunnings scam warning
spacer
The Largest Empires in the World's History
spacer
All the documents, fact sheets and downloads to do with this year’s 2025-26 Federal Budget
spacer
Winners and Losers - Federal Budget 2025-26
spacer
Building Australia's future and Budget Priorities
spacer
ATO outlines focus areas for SMSF auditor compliance in 2025
spacer
ATO to push non-compliant businesses to monthly GST reporting
spacer
ASIC pledges to continue online scam blitz
spacer
Tax Office puts contractors on notice over misreporting of income
spacer
Tax planning tips for 2024-2025
spacer
What does the proposed changes to HELP loans mean?
spacer
Vacant Residential Land Tax
spacer
The Most Held Currencies in the World | 1850-2024
spacer
Salary sacrifice and your super
spacer
5 Clauses Tenants Should Look For When Reviewing a Lease
spacer
ASIC continues crackdown on dodgy directors
spacer
Vehicle association calls for stricter definitions with luxury car tax changes
spacer
Government to push ahead with GIC deduction changes
spacer
Exploring compassionate early release of super
spacer
Have you considered spouse contribution splitting?
Article archive
spacer
Quarter 1 January - March 2025
spacer
Quarter 4 October - December 2024
spacer
Quarter 3 July - September 2024
spacer
Quarter 2 April - June 2024
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
Super tax concession changes: consultation

As flagged earlier in the year when the announcement was made, the Federal Government recently released a consultation paper on its proposal to reduce super tax concessions for individuals with super balances over $3 million, including those with self-managed super funds (SMSFs). 

.

Some important questions the paper asked included whether the proposal would create any unintended consequences and whether the current proposed proportioning methods are appropriate. The new measure is not yet law.

To recap, the government proposed in late February that individuals with a total super balance (TSB) of more than $3 million combined in all the super accounts will have their super concessional tax rate changed to 30% from the 2025–2026 financial year onwards. This means from 30 June 2026, the earnings of those individuals on the part of their TSB over $3 million will attract an additional 15% tax. The additional tax will be applied directly to the individual and there will be no change to the tax arrangements within super funds.

The Australian Taxation Office (ATO) will continue to calculate the TSB of all individuals annually using existing information provided by super funds and SMSFs. Individuals will be able to quickly identify whether they will be subject to the new tax by reference to their TSB at the end of each financial year through myGov. As it is proposed, the threshold will not be indexed and is not shared between spouses, family members or between other individuals who have interests in the same fund such as an SMSF.

The additional 15% tax will be determined by the ATO and levied directly on individuals. This will also be imposed separately to personal income tax, and it is intended that the amount of tax payable would not be reduceable by deductions, offsets or losses available under the personal income tax system (i.e. only prior year negative earnings could be applied).

 

 

 

Acctweb

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2024 - All Rights Reserved | 333 Canterbury Road, Canterbury VIC 3126 | Tel: 03 9509 3911 Site by Acctweb