Don’t change super tax
Constant change to superannuation taxation arrangements undermines the overall confidence in the system, according to a pre-Budget submission filed with the Federal Treasury recently. ASFA claimed the structure of superannuation taxation concessions was “equitable”.
Constant change to superannuation taxation arrangements undermines the overall confidence in the system, according to a pre-Budget submission filed with the Federal Treasury recently.
The Association of Superannuation Funds of Australia (ASFA) claimed the structure of superannuation taxation concessions was “equitable and should not be changed at the current moment”.
Money Management reported the submission revealed the superannuation system needed to be allowed to “mature”.
“Only a small number of people have yet accumulated assets that can deliver more than a comfortable income in retirement,” the submission stated.
The ASFA urged against government proposals to change the structure of superannuation taxation concessions, stating it was not “the time to make major changes to the structure of superannuation taxation”.
There was also reinforcement of deferring the introduction of a superannuation account cap for higher contributions for those aged 50 years and over.
“ASFA is concerned that implementing the government’s $500,000 account balance threshold will be borne by all superannuation fund members, including low income earners, and that there may be another way to achieve the outcomes the government is after,” it read.
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