On 5 April 2013, the Treasurer, the Honourable Wayne Swan MP and
the Minister for Financial Services and Superannuation, the
Honourable Bill Shorten MP released a press release setting out the
Labor Government's proposed changes to the superannuation
system to 'improve the fairness, sustainability and efficiency
of the superannuation system'.
The changes, which are set out below, include a mix of measures
aimed at curbing the concessions available to members with higher
account balances and fixes to a number of identified issues with
the current system.
Capping the tax exemption for earnings on assets
supporting income streams
The tax exemption for earnings on assets supporting income streams
(or pension phase as it is often referred to) is to be capped to
the first $100,000 of earnings for each member from 1 July 2014.
Any earnings above this amount will continue to be taxed at 15%.
Based on a 5% return, the press release notes that the measure
would only apply
