Superannuation changes to hit 16,000 top earners

The Federal Government has announced changes to the superannuation system that it says will affect about 16,000 of Australia's highest earners in the first year, reported in an article in abc.net.au.

From July next year, earnings of more than $100,000 on superannuation pensions and annuities will be taxed at 15 per cent instead of being tax-free.

The change will not apply at the accumulation stage.

Treasurer Wayne Swan says the change will improve the fairness and sustainability of the system, given Australia's ageing population.

At a rate of return of 5 per cent, the Government expects the change will only affect people with more than $2 million in superannuation assets.

Mr Swan says tax concessions for high-income earners are too generous.

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