A recent proposal by the Federal Government on superannuation tax changes has received backlash from the Financial Services Council.
Under the changes, which were announced earlier this year and detailed in draft legislation released this week, a 30 per cent tax will apply to the increase in the annual value of super funds over $3 million during the financial year.
Financial Services Council acting chief executive, Spiro Premetis, told The Australian that more than 500,000 current taxpayers would be impacted by the government’s proposed 30 per cent tax rate.
Mr Premetis said “204,000 Australians under the age of 30” would also be adversely affected.
“Leaving the cap stuck at $3 million will mean that in today’s dollars a 30-year-old will have a real cap of around $1 million, calling into question the intergenerational fairness of an unindexed cap,” Mr Premetis said.
The Financial Services Council’s comments come after the proposed tax regime was also criticised by the Self-Managed Super Funds Association.
Source: The Australian.