9 November 2016
Pass super tax changes to provide certainty and confidence
The Association of Superannuation Funds of Australia said the legislation introduced into Parliament today giving effect to tax changes to superannuation should be passed without any undue delay, to provide certainty and confidence in the system.
While the extensive detail contained in the Bill and Explanatory Memorandum needs to be carefully analysed, ASFA has broadly supported the thrust of the government’s tax package from its announcement because it makes the superannuation system more sustainable and fair.
ASFA CEO Dr Martin Fahy said the proposed measures to allow individuals with modest balances to make use of previously unused concessional contribution caps and allowing up to $100,000 a year non-concessional contributions, were important to provide equity for people with broken work patterns.
“This is particularly significant for women who need to make more substantial catch-up contributions once they have the capacity to do so,” he said.
“Increased flexibility for the self-employed to make contributions is also a much needed improvement.
“The growth of the gig-economy, where more people are employed on contracts, means superannuation settings need to change to reflect modern working patterns.
“With this legislation we now have sustainable and fair parameters for tax on superannuation.”
ASFA is calling for a period of stability in the rules around superannuation.
“This legislation is an inflection point in superannuation policy that should allow people to move on and increase their confidence in the system,” Dr Fahy said.
“ASFA agrees with the government that the fundamental objective of the system should be enshrined in law, however, ASFA also believes the goal of superannuation should be aspirational and should go further, to provide adequacy and comfort in retirement.”
For further information, please contact:
Teresa Mullan, Media Manager, 0451 949 300.
About ASFA
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.
