University of New South Wales Faculty of Law Research Series

University of New South Wales Faculty of Law Research Series 2008

 

Superannuation Taxation: less equitable, less functional

Gordon MacKenzie, University of New South Wales

Article comments

This paper appeared in Dialogue vol 26 3/2007. This paper may also be referenced as [2008] UNSWLRS 26

Abstract

Taxation of superannuation is one of the most complex areas of taxation law largely because the Australian system has had three points at which tax was payable. These were when contributions were made to a superannuation fund, on the income of the fund itself and, finally, when a benefit was paid. The changes made to taxation of superannuation, which commenced on 1 July 2007, are a boon to those over 60 years old, but unless your marginal tax rate is greater than 15 per cent they do not make superannuation any more attractive as a savings vehicle. In addition, the changes have less obvious effects, including that employer sourced termination payments are now taxed separately from taxation of superannuation payments; and the rules that prevented individuals from overusing the favourable taxation of superannuation have been removed and replaced by limits on amounts that can be contributed to a superannuation fund. This paper will consider these, and other, changes to the system.

Subject Area

Taxation

Recommended Citation

Gordon MacKenzie, "Superannuation Taxation: less equitable, less functional" (May 2008). University of New South Wales Faculty of Law Research Series. University of New South Wales Faculty of Law Research Series 2008. Working Paper 26.
http://law.bepress.com/unswwps/flrps08/art26

No readers' reactions have been posted for this article. To submit one, copy the URL for this article (http://law.bepress.com/unswwps/flrps08/art26) and click here.