The combined adjustments are projected to add approximately $1.6 billion annually to the federal budget through increased tax revenue.
Initially, the legislation included several components, but now, only a higher tax on realized earnings remains, with the thresholds set at $3 million and $10 million, both of which will be indexed.
Despite the modifications, the fate of the current bill remains uncertain. The Coalition stands against the proposed changes, necessitating support from the Greens for the government to secure approval in the Senate.
In the face of this opposition, ASFA has called on both the Greens and the Coalition to endorse the legislation.
“These adjustments collectively contribute to making super tax settings more equitable and sustainable,” stated ASFA’s chief executive, Mary Delahunty.
“I urge the parliament to expedite the passage of this legislation,” she added.
“Aussie workers on low incomes cannot wait another day for the fairness that this package delivers to them.”
If passed, the higher tax rates on wealthy accounts will come into effect on July 1, while the LISTO boost will follow a year later.
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