7 September 2016
ASFA welcomes release of draft super bills
ASFA welcomes the release of the first tranche of draft legislation supporting superannuation tax changes announced in the May 2016 Budget and the associated opportunity to work with government to ensure the legislation has been appropriately drafted.
ASFA interim CEO Jim Minto today commended the government for listening to feedback about arrangements for the Low Income Super Tax Offset (LISTO) and simplifying administrative arrangements.
LISTO provides benefits of up to $500 for 3.1 million low income earners receiving superannuation contributions, with 1.9 million of them women.
Mr Minto said the proposed mechanism builds on the tried and tested mechanisms used to deliver the Low Income Superannuation Contribution that formerly applied.
For a person earning just $37,000 a year, aged 30 and retiring at aged 65, the LISTO if applied over their working life would boost their superannuation balance, in today’s dollars, by around 20 per cent, from $200,000 to $240,000.
Along with the LISTO, the measures in the draft legislation:
- improve access to concessional contributions by allowing people to claim a tax deduction for personal superannuation contributions, irrespective of their employment arrangements. This will assist around 800,000 people, including employees whose employers do not offer salary sacrifice arrangements.
- remove restrictions that currently prevent some people aged between 65 and 74 from making voluntary contributions to their superannuation.
“It is important to get the details of all the measures right and we welcome the opportunity to work with the Government to ensure the superannuation tax legislation is fit for purpose,” Mr Minto said.
“The legislated objective for the superannuation system is enormously important and we need to ensure it will lead to adequate retirement outcomes for all Australians.
“We look forward to working constructively with the Government and the Parliament on the legislation in the first tranche and on the legislation on the remaining measures, which the Government has indicated will be released in the next few weeks,” concluded Mr Minto.
For further information, please contact:
Teresa Mullan, Media Manager, 0451 949 300.
ASFA 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, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.