News & Insights

AFR: Labor given steer on how to target the truly rich

Fund manager Don Hamson has thrown his support behind an alternative to Labor’s franking credit policy that would cap the super fund balances of the wealthy at $3.2 million.

There is an estimated $187 billion sitting in self-managed super funds with balances of $5 million-plus.

The top 100 funds hold $7.9 billion collectively.

Don Hamson: ”Labor could do what Rice Warner argues, which is allow a maximum amount of money in super of, say, $3.2 million.” Kate Geraghty

 

To target the truly rich, Labor could force amounts over $3.2 million to be removed from super, elevating tax payable from a light 15 per cent to as much as 49 per cent, according to Mr Hamson, the managing director of Plato Investment Management.

“Labor could do what Rice Warner argues, which is allow a maximum amount of money in super of, say, $3.2 million,” he told AFR Weekend.

“That would target wealthy people while leaving unharmed people like my mother, who was above a pensioner but the impact of the change would be that she would earn less money than a pensioner.”

Read the full article in The Australian Financial Review.