As it is now over four years since the Henry Tax Review, or to give it the full title the Australia’s Future Tax System Review, was released it seemed like good time to revisit some of the recommendations to see which have been implemented and which have not.
The Henry Tax Review
Announced in May 2008, around the federal budget by then treasurer Wayne Swan the Henry Tax Review was to be a “comprehensive review of Australia’s tax system to create a tax structure that positions us to deal with the demographic, social, economic and environmental challenges of the 21st century“. When the report was handed down, in December 2009 the review panel had made a total of 138 recommendations, including several about superannuation.
Tax on super fund income
Recommendation 19 was to halve the tax rate for super fund earnings from 15% currently to 7.5%. The 7.5% would apply to what is currently Exempt Current Pension Income and also to capital gains, though funds would loose the one-third discount. This has not been implemented.