No tax rise on Australia pensions20 July 2015 by News Desk
The government in Australia has ruled out any increase in tax on pension funds (superannuation) during the lifetime of the current parliament.
Prime Minister Tony Abbott has promised that there will be no increased taxes on superannuation under the Coalition government. Abbott and his party had made this vow before the last general election, but it emerged recently that the government has been examining a range of options concerning private superannuation funds.
“We made a very clear commitment prior to the last election that there would be no adverse changes in superannuation under this government in this Parliament and we have made a clear decision that we aren’t ever going to increase the restrictions on super, because super belongs to the people,” Tony Abbott said.
Since mid-2007 self-managed superannuation funds have been allowed to invest in property. With the rising housing market in Australia, many people have invested in property as a means of securing a bigger return on their money.
Property in a self-managed super fund allows investors to accumulate property using bank debt that will be tax free in pension stage for both rental income and any capital gains on sale. It also allows the full benefits of negative gearing at the individual’s marginal tax rates while still working.