Reforming Tax Exemption for Earnings On Superannuation

 

24 May 2013

Reforming the tax exemption for earnings on superannuation assets supporting income streams

On 5 April 2013, the government announced it will better target the tax exemption for earnings on superannuation assets supporting income streams by capping it to the first $100,000 of future earnings for each individual.

Under current arrangements, all new earnings (such as dividends and interest) on assets supporting income streams (superannuation pensions and annuities) are tax free. This is in contrast to earnings in the accumulation phase of superannuation, which are taxed at 15%.

From 1 July 2014, earnings on assets supporting income streams will be tax free up to $100,000 a year for each individual. Earnings above $100,000 will be taxed at the same concessional rate of 15% that applies to earnings in the accumulation phase. 

Disclaimer
All representations and information contained in the Sam David web site are made in good faith and are believed to be correct at the time of preparation. Articles are of a general nature and they do not purport to be specific taxation advice. Individual needs or other considerations have not been taken into account, thus information contained herein should not be relied upon as a substitute for detailed advice.