Regarding the proposed tax on superannuation income above $100,000 per annum, I would like to know if the government will take into account losses in previous years similar to company accounts? A superannuation fund that is predominantly in shares experiences wild fluctuations in performance. A $1,000,000 fund comprising mainly shares probably realised 35% gains two years running about 5 years ago before the global financial crisis, followed by two years of 25% losses in the 2008/9 crash. A $1,000,000 fund that holds mainly shares would easily be trapped by this new tax under similar circumstances. So, the question is, if a fund loses say $40,000 in year one and then makes $200,000 in year two, is it taxed on $60,000 ($100,000-$40,000) or are previous years losses ignored?
I have not seen any comments addressing this and hope Eureka Report can shine some light on the issue.