Labor’s proposed new tax on high superannuation balances will have a special sting for many public servants in their 40s.
That is because the generous defined benefit superannuation scheme – which closed to new entrants in 2005 – pays a pension based on a person’s salary at their last three birthdays before they retire, multiplied by a number based on their length of service and contributions.
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Andrew Hobbs covers self-managed superannuation funds (SMSFs), financial planning, retirement, inheritance, tax, personal finance and, sometimes, the Perth Bears. He has been a financial journalist for 30 years, previously at Bloomberg and AAP.
