- Current proposals will affect far more people than was originally suggested
- Coalition haven’t scrapped the policy (a bad sign)
- We highlight some of the practical consequences
In leverage in our example, someone with a balance well below $1m could end up being hit by the tax.
While the pension tax concept is still floating around and no draft legislation has yet been introduced, it’s important that you start thinking about how it might affect you, so you’re ready to act if necessary. For instance, SMSF trustees might need to crystallise bond gains prior to the rules starting (on 1 July 2014) or accelerate income where possible.
We’ll continue to keep an eye on developments and keep members updated.