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Analyst warns of SMSF tax

The federal government may impose a tax on the ‘top 11 per cent of self-managed superannuation funds (SMSFs)’ in order to raise $1.8 billion in revenue, according to one industry analyst.

Financial services analyst David Chin, managing director of BasisPoint Consulting, says the 56,500 SMSFs with the largest assets are at risk of a tax hike.

“$17.8 billion in taxable income from these 56,500 SMSFs could be earned if an 8 per cent investment return is achieved this year,” said a statement issued by BasisPoint Consulting.

“Imposing an additional 10 per cent income tax (on top of the existing 15 per cent for SMSFs) would equate to $1.78 billion in new tax revenues for the government.”

“The potential tax revenue would be tempting to a government that has already hinted of tax changes in the SMSF sector.”