Interesting Items: The Upcoming Budget

This week the media have been speculating about the budget, which they tend to do this time of year.

The big issue is an expectation that the Government will attack superannuation as a means to raise tax to cover the major deficit, which we are all now expecting.

On the 01/07/2012 if you earned over $300,000 taxable income your contribution tax inside of super went up from 15% to 30%.

It is now being speculated that this limit will fall from $300,000 to $180,000. This will have a major impact for the Super balances for people in this income class.

It is estimated that the average worker earning over $180,000 per annum will have around $80,000 less in superannuation because of this tax.

On the 01/07/2013 the Super Guarantee amount will increase from 9% to 9.25%.

If the above changes come in people earning $180,000 will receive $450 more in super from their employer but the government will take extra tax of $2,500.