Big bank reveals how the super rich are set to slash their tax bill - and why ... trends now
Anthony Albanese's changes to the stage three tax cuts will encourage wealthier people to put their money into superannuation to minimise their tax burden, Westpac bank analysts predict.
Labor changed the former Coalition government's stage three tax cuts plan to keep, rather than scrap, the 37 per cent marginal tax bracket for those earning between $135,000 and $190,000.
The Prime Minister's changes will also see the top 45 per cent tax bracket kick in at $190,000 instead of $200,000, with the changes in February passing through Parliament with the Opposition's support.
That means the top three per cent of income earners on $200,000 or more will get see their tax bill cut by $4,529 from July 1, 2024 instead of $9,075 under the previous Coalition government's plan.
The changes were designed to give more relief to lower and average-income earners.
But the stage three tax changes could also end up seeing more tax concessions of another kind flow towards the rich.
Anthony Albanese 's changes to the stage three tax cuts will encourage wealthier people to put their money into superannuation to minimise their tax burden, the Westpac bank says (the Prime Minister is pictured right with this fiancee Jodie Haydon)
Westpac senior economist Jarek Kowcza said high-income earners will instead push more of their salary into superannuation, which would only be taxed at 15 per cent instead of 45 per cent.
'One area that has received less attention is the interaction between the changes to the tax scales and the superannuation system,' he said.
'These changes may to lead to some behavioural effects.
'Higher income earners will become more incentivised to contribute to superannuation to reduce their tax bill than under the old package.'
Mr Kowcza said Labor's stage three
