Superannuation is a proven tax-effective vehicle for long-term retirement savings. Currently both contributions and investment earnings (in accumulation phase) are concessionally taxed at a rate of 15% for people with taxable incomes less than $180,000 (or 30% for those over $180,000).
However there is no certainty that superannuation’s current tax benefits will remain in the medium to long term with superannuation flagged as a key component of the Commonwealth Government’s broader tax system review. An increase in tax payable on either superannuation contributions or earnings would clearly reduce its appeal as a retirement saving vehicle.
Continue reading the full White Paper, Investment Bonds: Tax-effective alternatives to superannuation, is available here.
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