Super is about to get even more lucrative, provided you've got the cash. Photo: Louie Douvis
How's that "age of entitlement" thing going for you?
There's been a bit of a setback for some of the would-be entitled this week, but entitlement has always been about positioning.
The catch is that you have to have a spare million, but that's your problem.
Turns out the place to be positioned is in a fat superannuation fund.
Just to keep you up to date, the contribution limits on superannuation are being increased in the new financial year.
While various bits of middle and lower class entitlement have had their indexing fiddled with, the good times keep rolling for those with the spare cash to whack in a tax haven.
From July 1, those over 49 will be able to contribute $35,000 at a concessional tax rate and $180,000 of after-tax money.
Using the pull-forward option, that means a couple with some spare cash could plonk more than $1 million in their super tax haven and never have to pay tax on what the money earns or what the super fund pays subsequently pays out to them.
That's a better deal than anything available from shady Swiss bankers, Jersey, the Cayman Islands or any of the usual tax haven suspects. Even Google would be impressed.
Of course the catch is that you have to have a spare million, but that's your problem. The government can only do so much for the top couple of per cent.
On the other hand, if you have a lazy million at your disposal, you probably already have a very tasty super fund. Yes, it just keeps on giving.
It would be churlish at this stage to remind the three million or so lesser citizens that there is absolutely no tax concession to encourage them to put money into super. Stop complaining and become wealthy instead.
That wealthy retirees were about the only group that managed to escape any of the promised shared lifting was something picked up by The Australian Financial Review yesterday, but the story missed the contribution limits increase.
Such retirees could be facing a slight rise in medical costs from the budget.
But if, say, you're enjoying totally tax-free annual income of $200,000 or more, would you care?
As for the merely working well-off, the salary packaging industry is being invigorated to minimise your lifting.
That's the same industry that the coalition saved by undoing the FBT/novated lease changes that were in the last Labor budget. Yes, it's good to see consistency in a government.
Michael Pascoe is a BusinessDay contributing editor.