Australians face hidden taxes on their superannuation despite the Federal Government promising capital gains tax changes would not affect retirement savings \u2014 leading to yet another potential Budget backdown.<\/p>\n
The Financial Services Council warns that certain Australian super assets, worth a combined $372 billion, face an additional $55 million a year tax bill if their those assets are held in a managed investment trust or an attribution managed investment trust.<\/p>\n
With Labor yet to devise a solution, shadow treasurer Tim Wilson said the Government was taxing super to fund its spending binge.<\/p>\n
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By continuing you agree to our Terms<\/a> and Privacy Policy<\/a>.<\/p>\n \u201cThe Albanese Government has been caught laying yet another tax landmine in its Budget to feed its spending addiction, and this time it\u2019s targeting superannuation,\u201d he said.<\/p>\n Mr Wilson accused Labor of targeting retail super funds while being gentler to union-backed industry super funds.<\/p>\n \u201cLabor thinks super is their money, and they\u2019ll rig the rules to ensure Australians\u2019 super goes into the funds their mates\u2019 control, and tax anyone who wants to control their own retirement,\u201d he said.<\/p>\n Treasury is understood to be working through the issue with Treasurer Jim Chalmers saying Labor remained committed to preserving the 33.3 per cent capital gains tax discount on super.<\/p>\n \u201cSuper is already taxed at a lower rate for good reason, and that is not changing. We will always defend the super system and that will never change,\u201d he said.<\/p>\n \u201cThe Budget didn\u2019t change the tax rate applied to super funds or the one-third CGT discount.\u201d<\/p>\n A May Budget explainer from Treasury promised that super, including self-managed superannuation funds, would be exempt from Labor\u2019s capital gains tax changes.<\/p>\n \u201cThese changes will apply to individuals, partnerships, companies and most trusts. Widely held trusts (for example, most managed investment trusts) and superannuation funds (including SMSFs) will be excluded,\u201d it said.<\/p>\n But a new analysis from the Financial Services Council, which represents retail superannuation funds, revealed $372b worth of super assets were potentially affected.<\/p>\n Australia\u2019s $4.4 trillion superannuation sector also includes $2.6 trillion worth of profit-driven super and self-managed super funds.<\/p>\n Financial Services Council chief executive Blake Briggs is calling on the Government to amend its capital gains tax changes announced in the Budget so managed investment trusts and attribution managed investment trusts were taxed the same way.<\/p>\n \u201cWe have had constructive discussions with Government and Treasury, and we are optimistic there is a genuine willingness to work with industry to fix this issue,\u201d he said.<\/p>\n \u201cThe last thing anyone wants is for Australians\u2019 retirement savings to be worse off because of technicalities that were never intended.<\/p>\n \u201cOn Budget night, the Government explicitly stated that superannuation funds would be unaffected by the changes.\u201d<\/p>\n FSC modelling showed super held in a managed investment trust or an attribution investment trust would incur a 16 per cent higher tax bill compared with retirement savings held directly.<\/p>\n An amendment to fix how capital gains tax is applied to super would mark the third major backdown since the Budget, to avoid unintended consequences.<\/p>\n This would follow a scrapped plan to impose a 30 per cent tax on discretionary testamentary trusts, used for estate planning purposes, and the widow\u2019s tax that stopped grandfather provisions on negative gearing for investment properties being transferred to a spouse in the event of a death or a divorce.<\/p>\n","protected":false},"excerpt":{"rendered":"Australians face hidden taxes on their superannuation despite the Federal Government promising capital gains tax changes would not…\n","protected":false},"author":2,"featured_media":604079,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[986,72,176,61,60,174,175,1650],"class_list":["post-604078","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-australia","tag-business","tag-finance","tag-ie","tag-ireland","tag-personal-finance","tag-personalfinance","tag-politics"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/604078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=604078"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/604078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/604079"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=604078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=604078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=604078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}