From the moment pension funds become fully taxable, their value will fall.
The Government says the change will help it avoid the burden of higher taxes on the wealthy.
The changes will also help pension funds to save money in retirement.
Where to start The Government’s plans to introduce the changes are set out in a report to the Cabinet Committee on Taxation, which is reviewing how it plans to change the way pensions are taxed.
There is no timetable for the changes.
What will happen? “
The transitional rule will mean that contributions to existing pension funds, which will be exempt from tax, will not be affected by the new rules.”
What will happen?
The transitional rule is designed to protect the taxpayer from the tax and to ensure that pension funds continue to be exempt, according to the Government.
However, it is not a permanent solution.
Pension funds have to declare their assets in order to avoid the tax.
If they do not, the government will have to find a way to bring in the money to pay the tax, with some estimates saying the cost of finding and paying the tax could exceed $1.5 billion a year.
Where is the money coming from?
The Government said the changes were necessary to address “the complex complexities of pension finance”, which has been described as “a very complex and costly subject”.
Where is it?
There are two main sources of pension fund money: tax-free income, which does not count towards the standard pension and is taxed at the top rate of 28%, and income from other sources, which has to be taxed at 15%.
Where does the money come from?
Pension funds are currently taxed at their investment returns, but the Government wants to change this so that they are taxed on income they receive from the government and from the state.
Where will it go?
There is a tax on income from private pension schemes, and it will also apply to the income from retirement schemes.
However this is expected to increase under the transitional rule.
Who pays the tax?
The tax will be paid by the Government and by the private pension funds that are exempt from the taxation.
The public pension funds will not have to pay.
The tax is also expected to be paid on pensions from companies which have a business presence in Australia, such as the Australian Investment Management Company.
The Treasury says that the changes will have a direct impact on the businesses in Australia which are able to use these schemes to pay tax.
How do I get the changes?
You can find out how to file a return by going to the website of the Tax Office.
You can also file your return online by visiting the Taxpayer Advocate.