According to a recent article in the Australian Financial Review, at least 11,000 Australians have more than $5 million in superannuation.
This is estimated to cost the federal budget around $1.5 billion per year in foregone revenue. In order to address the budget deficit, the government is considering a proposal to limit superannuation concessions for any amount above $5 million.
There is probably little sympathy for those who are in this fortunate asset position, but bear in mind that politicians have a habit of tinkering with amounts, once the initial work is done. At some future time, for example, someone may accidentally drop a zero off that number!
Where possible, we work with client couples over time to ensure that each partner’s superannuation balance is as close to matching as possible. This may alleviate any fallout from future reductions in the maximum concessional limits.