Industry Super Australia welcomes fairer tax breaks for women and lower income earners
Industry Super Australia (ISA) welcomes the release today by the Government of the first tranche of super tax measures. It prioritises $500 super tax breaks for Australia’s 3 million lowest income earners (2 million of whom are women).
The LISTO (Low Income Super Tax Offset) is a rebate of up to $500 for part-time and low income earners who pay more tax on super than their personal income.
“This measure is critical to restoring the fairness and integrity of superannuation tax concessions. It starts the process of closing the superannuation gender gap, and making the super tax system more contemporary and in keeping with modern society”, said David Whiteley, Chief Executive of Industry Super Australia (ISA).
“It is welcome that the government has prioritised tax breaks for the Australians that need them, and not just the top end of town”
The latest 2013-14 ABS figures on the difference between men’s and women’s superannuation savings at retirement age continue show a deeply alarming disparity, with men retiring, on average, with $322,000 compared with $180,000 for women. Just under half (46%) of all women work part time and therefore have lower incomes, the LISTO will help boost their super savings.
ISA encourages the Government to move as quickly as practicable to release the full package, and for all Parliamentarians to reach consensus on a super tax package that better targets tax concessions and improves the fiscal sustainability of the system.
“Better targeted super tax concessions will increase the retirement savings of millions of Australians. Not acting to correct the imbalance now will impact heavily on pension outlays and the overall economy as our population ages and the number of taxpayers shrinks”, said Mr Whiteley.
For further information, please contact Phil Davey 0414 867 188