NEO Super

The government’s proposal to tax earnings on super balances exceeding $3 million has hit a roadblock in the Senate that is unlikely to be resolved before the election due by May 17.

Although it’s been a long time coming, for those stuck in legacy products it’s been worth the wait. Finally, they will have the opportunity to convert or exit these outdated products and secure more control over their retirement income.

When Labor first introduced its legislation to increase the tax burden on 80,000 superannuants, it seemed plain sailing. Now, with opposition spreading across the community to small businesses, farmers, retired judges, public servants and venture capitalists, its passage through the Parliament is looking increasingly unlikely.