AMP SMSF head of policy, technical and educational services Peter Burgess told InvestorDaily's sister publication, SMSF Adviser, the Budget Repair Levy doesn’t just apply to the highest marginal tax rate – it also applies to a number of other tax rates that are based on the highest marginal tax.
“For example, the rate that applies to non-complying super funds will increase from 45 per cent to 47 per cent and the rate that applies to excess non-concessional contributions and non-arm’s length income, will also increase from 45 to 47 [per cent],” Mr Burgess said.
“[Advisers] need to ensure these increased tax rates are factored into their tax calculations and strategies from 1 July 2014,” he added.
The Departing Australia Superannuation Tax Payments (DASP) will also be affected, said the SMSF Academy’s managing director, Aaron Dunn – with two rates increasing to incorporate the levy.
DASP payments from a taxed super fund will be subject to a tax rate of 38 per cent during the period that a levy applies, Mr Dunn said, and DASP payments from an untaxed super fund will be subject to a rate of 47 per cent.
