ASFA, the voice of super, is today proposing reasonable measures aimed at tackling inequity head-on by boosting equity and fairness in the superannuation system.
New research released today makes a case for the introduction of measures aimed at redistributing revenue generated through the Government’s proposed changes to those with balances over $3 million (Division 296) and those earning more than $250,000 per year (Division 293) to support low-income earners by enhancing the Low Income Superannuation Tax Offset (LISTO).
“By increasing support for low-income earners and ensuring fair tax contributions from those with substantial superannuation balances, we can foster a more balanced and equitable retirement system,” says ASFA CEO, Mary Delahunty.
ASFA is calling for $750 million of the revenue generated be ring-fenced to increase the LISTO threshold for those earning $37,000 to those earning $45,000, alongside boosting the maximum payment from $500 to $700. This change would benefit an additional 1.2 million Australians, a majority of whom are women and many of whom are young workers and workers from a non-English speaking background. This will significantly improve their financial security in retirement.
In real terms, this could mean a 35-year-old earning $44,000 could see their superannuation balance at retirement increase from $293,000 to $336,000.
“Division 296 and Division 293 aren’t just measures aimed removing tax concessions for those with high super balances – it’s an opportunity to make society fairer and provide low-income workers with a more dignified and secure retirement,” said ASFA CEO, Mary Delahunty.
ASFA calls on the parliament adopt these recommendations, which will ensure a fairer and more dignified retirement for over 1.2 million low-income workers.
“This is about fairness – enhancing LISTO offers a powerful widespread impact for people’s retirement outcomes,” said ASFA CEO, Mary Delahunty.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
