The Association of Superannuation Funds of Australia (ASFA) has warned that the federal budget's proposed superannuation changes will adversely affect 1.26 million people.
In a statement, ASFA noted several changes that are likely to have adverse consequences for superannuation savings, most notably the new 15 per cent taxation of transition-to-retirement pensions.
ASFA estimates indicate more than 550,000 Australians are likely to be affected by the proposed 15 per cent tax on earnings from transition-to-retirement pensions. These pensions are currently tax-free.
However, Treasurer Scott Morrison has previously claimed that only 115,000 people will be affected by the changes.
The proposed $1.6 million transfer cap on superannuation balances will also have significant adverse effects, according to the ASFA report.
The super lobby group also listed several changes likely to benefit superannuation savers, including tax deductions for personal contributions, the low-income superannuation tax offset and the relaxation of contribution rules for those aged 65 to 74.
ASFA estimates the number of Australians likely to benefit from the changes exceeds 4 million, but notes that some Australians may be affected by multiple changes, both positive and negative.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all