Maybe the solution to the salary sacrifice problem is to get a reduction of 15%, i.e. rather than be reduced from 46.5% to 15% be reduced from 46.5% to 31.5%. It would still be worthwhile tax deduction and no one would have a bigger advantage over another. The government would also benefit by the extra tax revenue.
I personally am looking forward if the pass the legislation to keep the CC cap at $50k for people under $500k. It will help out self employed people especially who in my experience wait until the last minute to think about super. I also think its add another dimension to the value adding an adviser can give to clients in the form of super splitting to keep one persons super under $500k to allow higher contribution. I do agree with you Lindso about the policing etc. One question I have always wanted answered is when is the date for the $500k, 1st July? Policy needs more revealing I think......
"The question I ask which part of your income are you sacrificing? Is it the last / highest income (taxed at your MTR), or is it the first part - thats taxed at 15%? In which case,everyone gets the same tax saving by salary sacrificing, unless it's over (about) $29k pa."
Have a look at peoples tax returns and tell me which part they are sacrificing.......definately MTR.
