There are changes to super and BAS reporting and tax concessions that you should know about: Super – Do
Treasurer Scott Morrison has confirmed all taxes, including those on superannuation, must be reviewed as part of hs drive for a more efficient tax mix.
“Anything that is going to help Australian’s work, save and invest, I am open to,” the Treasurer said on Monday morning.
Mr Morrison, who replaced Joe Hockey as Treasurer, has been eager to draw a line between himself and shadow counterpart Chris Bowen over tax
Mr Morrison believes he can boost revenue by curbing spending and stimulating growth through measures such as tax reform. He sees no need to increase the net tax take.
Mr Bowen said last week all three measures are required – increased revenue, spending cuts and economic reforms to stimulate growth.
In April, Labor announced a policy to trim excessive superannuation tax breaks. Once retirees had earned over $75,000 from their super, each dollar over $75.000 would be taxed at 15 per cent. This would mean someone who earned $100,000 from their super in a year would pay $3750 in tax.
Labor has also promised to increase from 15 per cent to 30 per cent to superannuation contributions tax rate for people earning over $250,000.
Once Labor announced its policy, the government ceased all work on its on proposals and announced it would never touch super taxes, this term or the next.
Mr Morrison told The Australian Financial Review on Thursday that super taxes, as well as other taxes Labor is looking at, including capital gains breaks for investors and negative gearing, should all be looked at.
On Monday, he confirmed super was on the table again as he strove to design a tax system that drove growth and productivity was the ultimate goal.
“I think it is important to keep stability and certainty in that area but there have been many issues raised in the area of retirement incomes,” he said.
“I dealt with them quite extensively in my former portfolio in the area of pensions which you and I discussed and there is an interface between these two. You have got to get all of the systems lining up.
“Your welfare system, tax system, your industrial relations – workplace relations system – they have all got to be lining up to achieve growth.”
He listed bracket creep and further measures to increase the incentive to move from welfare to work.
“If young people want to work more, then our tax system has to reward them for doing that,” Mr Morrison told
Mr Morrison said did not plan to “get locked up in an accountants’ picnic” when deliberating over tax changes.
He said the system as it stood was”not giving people who work save and invest a fair go.”
He also claimed he would not cut spending in but slow the rate of spending growth.
“It’s not about cuts, it’s about control,” Mr Morrison said.