The Association of Superannuation Funds of Australia (ASFA) today welcomed the passing of legislation enabling the Government’s superannuation tax changes and called for no further changes to the tax treatment of super.
ASFA CEO Dr Martin Fahy said the tax changes to superannuation address issues of equity and sustainability in Australia’s retirement income system.
“ASFA advocated for a ceiling on the amount of superannuation that is tax free in retirement and this policy has landed at the right point,” he said.
Dr Fahy said the establishment of the Low Income Superannuation Tax Offset (LISTO) is important to provide incentive for low income earners to save for their retirement.
“The greater flexibility in the system that the package will provide, including allowing people to make catch up concessional contributions, is a particular positive because it gives women who spend time out of the work force the opportunity to make greater contributions,” he said.
Dr Fahy also welcomed the enhanced capacity for the self-employed and for employees unable to make salary sacrifice contributions, to make voluntary tax concessional contributions.
“The changing nature of work means there needs to be greater flexibility for people to make contributions to super when they have the capacity to do so,” he said.
Dr Fahy also called for no further changes to the tax treatment of superannuation.
“Now we have the certainty of these measures in place, we need to cement these changes and provide stability in the system to rebuild trust and give Australians the confidence to contribute more to their retirement savings,” he said.
“It also will be important for the ATO and other regulators to facilitate the transition to the new arrangements by providing early guidance on reporting and other requirements for funds.
“Both funds and fund members should be allowed a degree of flexibility until the new arrangements are bedded down.”
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.