The proposed Levy by the Gillard Government to tax superannuation funds in pension phase has been scrapped. The initial proposal was to introduce a 15% earnings tax on superannuation fund members who were in pension phase with earnings over $100,000.

Wayne Swan initially suggested that this tax would only affect superannuation balances over $2 million. However, further investigation revealed in a good earnings year a super fund with a balance of $700,000 could easily be included in this tax.  Super Funds with lumpy assets such as property could be hit with this tax when the property was sold.

The Coalition Government today have decided to scrap this tax to provide more certainty to the superannuation system. Mr Hockey said the superannuation industry was screaming out for stability “and we are delivering it”.

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Thomas Jacks BCom (Acc), SMSF SpecialistTM, Adv. Dip F.S. (FP)
“I want to be able to assist clients with their investment and retirement planning by providing real strategy advice. It’s my aim to not only help my clients but to educate them by addressing the entire picture” Google Plus

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