$3m super tax will level playing field: Australia InstituteBY KARREN VERGARA | TUESDAY, 21 JAN 2025 12:30PMLaws that will double the tax on earnings of superannuation balances over $3 million, which were shelved in late 2024, will make the system fairer particularly as many are doing it tough, The Australia Institute says. Related News |
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Like most who are drawn to financial advice, Raamy Shahien is a people person, and it's his desire to foster a strong, sustainable community that has helped propel Viridian Advisory. Eliza Bavin writes.
With respect, the changing of the goal posts with regards to super discourages people from using it as their retirement savings.
Those with large balances did so under the rules at the time. And when they die, a tax of up to 15% of that death benefit may be taxed when it passes to the next generation.
Adjustments to the system were made in 2017, which makes it unlikely that superannuants will have large balances in the future.
So the changes have been made to address these "concerns", however the respective think tanks and policy makers and commentators just need to wait for the members to die.
Div 296 will be the catalyst for members to transfer their wealth to the next generation, thereby either reducing or eliminating the death tax being paid in the future.