Link Administration Holdings Ltd's (ASX: LNK) shares are down 6% to $7.45 at the time of writing due to a report released by the company indicating that the Federal Budget's proposed changes to the treatment of inactive superannuation accounts are likely to impact revenues. The changes will mean that accounts of less than $6,000 not receiving contributions for 13 months, will be transferred to the Australian Tax Office. Link has advised that this could reduce revenues due to a lower number of accounts being administered, although at this time the extent is not known.
Link Administration, a technological administer of outsourced superannuation, is trading on a forward price-earnings- ratio (PER) of 20x and is paying an annual dividend yield of 2%.
Computershare Limited (ASX: CPU), which is in the same sector as Link Administration, is trading on a forward PER of 18x with the share price up 22% in a year.
