After years of major changes to superannuation, the budget has only brought some minor reforms, mostly for those nearing retirement.
The Australian Council of Social Service slammed the cuts, saying they did little to bridge the gap between the "haves" and "have nots." Jennifer Westacott, chief executive Business Council of Australia, described the reforms as "one of the biggest tax cut packages we've seen". The group's spokesman Ian Henschke said while the energy assistance payment would help pensioners with cost of living pressures, a reinstatement of the indexation of the supplement would have been better.
From July 2020, those who are 65 or 66 will be allowed to make additional voluntary super contributions without having to meet work-test requirements. They will also be allowed to make three years' worth of non-concessional contributions in a single year.The current annual cap on non-concessional contributions is $100,000, meaning that $300,000 can be added into super in a single year. The changes bring the super rules into alignment with the future qualification age for the pension.
Alex Joiner, chief economist of IFM Investors, said the tax reforms were "clearly aimed as a sweetener to the electorate ahead of the general election." and would only support, rather than stimulate, the economy over the next year."They are most under cost of living pressures and would likely spend any gains more completely and thus stimulating economic activity," he said.
should do a piece on JohnShepherdSTP SingleTouchPayroll Impact aha
Is that the middle income earners on 200k? Well that's the middle of the treasurers!
every and anytime any govt says we are going to give you money be skeptical , when its weeks out from an election ..........be scared
Fantastic, well done Mr Morrison and team.