The National Foundation for Australian Women supports in principle the imposition of a higher tax rate on high balance superannuation accounts.
Recommendation1: The description of the proposal as a tax on earnings be changed to a tax on high balance superannuation accounts, and that this is reflected in the framing of the proposal.
Recommendation2: That a new condition of release be available where a member’s Total Superannuation Balance exceeds the new cap, currently proposed to be $3m, at 30 June.
Recommendation 3: That defined benefit income streams should be subject to the new cap, based on the same value as that applied for the current Transfer Balance Capcalculations. Where the value of the defined benefit pension alone exceeds $3m, tax should be provided for through PAYG arrangements.