Australia’s center-left government announced on Tuesday that it intends to reduce tax breaks for super-rich pension funds in order to close a budget deficit and reduce the country’s mounting debt.
Prime Minister Anthony Albanese’s Labor administration, which took office in May, intends to debate the elimination of tax breaks once it passes legislation on the future of superannuation, or retirement funds.
The elimination of tax breaks for persons with multi-million dollar superannuation accounts would save the government billions of dollars each year.
‘We have 32 self-managed super funds with assets of more than $100 million – the largest self-managed super fund has assets of more than $400 million,’ Assistant Treasurer and Minister for Financial Services Stephen Jones said at the AFR Super & Wealth Summit in Sydney.
‘The government celebrates accomplishment,’ he said, ‘but the concessional taxation of funds like these comes at a significant cost to the budget.’
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