Attack of the Budget Smugglers !
Very soon the Abbott government will hand down its second Federal budget. It's not unusual for budgets to be selectively 'leaked' before the second Tuesday in May. This can soften the blow for spending cuts or tax hikes.
What is unusual this time is for a proposal to increase tax that has bipartisan support. That is to say, the opposition agrees with the government. The tax to be considered is a superannuation tax aimed at the wealthy individuals.
We will soon find out 'Who' is a wealthy individual and 'How' the tax will be applied.
There are a couple of definitions of 'Who'. It could be defined by taxable income, assets within super or income generated by those assets within super.
The 'How' could be by way of increased contributions tax or increased tax on earnings within super.
I don't think we object to everyone paying their fair share of tax. My concern is that once legislated, future budgets could lower the thresholds so as to include more taxpayers and increase rates to raise the taxes. Effectively they will have 'budget smuggled'.