Australia to limit tax breaks on multi-million dollar retirement savings

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Australia to limit tax breaks on multi-million dollar retirement savings
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SYDNEY : The Australian government said on Tuesday it would limit tax breaks for members with pension balances of more than A$3 million ($2 million) in the face of mounting pressure on the federal budget and protracted deficits.The decision comes just days after the centre-left Labor government launched a

SYDNEY : The Australian government said on Tuesday it would limit tax breaks for members with pension balances of more than A$3 million in the face of mounting pressure on the federal budget and protracted deficits.

The high-income earners will come under a tax rate of 30 per cent, up from 15 per cent now and the government's decision is expected to impact around 80,000 people, Prime Minister Anthony Albanese said during a media briefing. The move, scheduled to become effective from July 1, 2025 and likely after the next federal election, is expected to generate revenue of about A$2 billion in its first full year.

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