FPA welcomes fairer taxation of excess contributions in super

From
Mark Rantall

Mark Rantall

Yesterday’s tabling of a Bill to provide for fairer taxation of excess contributions in super is a welcome measure designed to create greater equity for lower and middle income earning Australians.

Yesterday’s Tax Laws Amendment (Fairer Taxation of Excess Concessional Contributions) Bill 2013 provides a fair and considered response to resolving a fundamental imbalance for many Australians.

Mark Rantall, CEO of the FPA said:

“The FPA welcomes the tabling of this Bill into Parliament and on behalf of our members and the millions of Australians they serve, we are pleased to see a genuine attempt by legislators to bring greater balance to the process of taxing excess contributions to super. The FPA has been calling for change to the unfair penalties for excess concessional contributions for many years.

“It is vital to regain balance and equity in our taxation system, and the key area of taxation of superannuation’s concessional contributions is the right place to stay focused.”

The changes contained in the legislation will enable excess concessional contributions to be included in an individual’s taxable income and allow them to be taxed at the individual’s marginal tax rate regardless of their income or the cause of the breach. A non-refundable tax offset of 15 per cent will be provided to individuals to account for the income tax paid by their fund.

The changes will apply to contributions made on and after 1 July 2013.

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