Not all the ‘earnings’ over the threshold will get taxed at 15 per cent, just a percentage – depending on how much of your balance exceeds the cap each year.
The proposal has been widely criticised. Not because it will make people who are comfortably off pay more tax, but because of the way it is worked out. Draft legislation released on Tuesday makes it clear that the government is still committed to its very unpopular method.
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Meg Heffron is managing director at SMSF specialist firm Heffron.
