Industry Super Australia Welcomes Workable Compromise On Super Tax Breaks
Industry Super Australia welcomes the announcement of modifications to the Turnbull Government’s superannuation tax reforms with a decision to set aside a proposed $500,000 lifetime non-concessional cap, opposed by the Opposition.
In what should be a workable compromise, the government is instead proposing to pare back tax breaks on super contributions by lowering the annual non-concessional contributions cap from $180,000 to $100,000. This plan is similar to a compromise proposal advanced by Industry Super Australia in recent weeks in order to break the deadlock.
“This measure combined with the rest of the proposed super reforms will help rebalance unsustainable tax breaks and redirect greater support to lower paid workers who need the most help to save for retirement,” said David Whiteley, Chief Executive of Industry Super Australia.
“We would hope all MPs will now give careful consideration to these changes so the reforms can start to make their way through the Parliament. These are evolutionary, not revolutionary changes.”
At present, extra non-concessional contributions of up to $180,000 a year can be made to super (including $540,000 in any three year period), which has allowed high wealth individuals to contribute extremely large amounts into super to take advantage of the low or no tax environment.
“The proposed measure will restrict superannuation being used for estate planning, while providing greater support for many more, lower income Australians saving for retirement, including 5 million members of not-for-profit industry super funds,” said Mr Whiteley.
“Most importantly, there is cross-parliamentary support for the Low Income Super Tax Offset (LISTO) which will boost the savings of more than 3.3 million Australians on lower incomes, particularly women.
“We are confident that the commitment of all parliamentarians to better target super tax concessions will lead to a positive outcome for Australia’s superannuation savers.”
For further information, please contact Phil Davey 0414 867 188