‘Accurate’ costing of super tax concessions needed
The SMSF Professionals’ Association of Australia (SPAA) is calling on the government to address costing of super tax concessions and continues its push to raise the concessional contribution cap in its pre-Budget submission.
In relation to super tax concessions, SPAA advocates that its fiscal cost be considered “in the context of the three pillar retirement income system to accurately reflect the long-term nature of superannuation”.
“SPAA has previously argued that the Treasury tax estimates method of measuring the value of these concessions is biased against them and misinforms the policy debate,” SPAA’s chief executive Andrea Slattery said.
Ms Slattery also said the current general concessional contribution cap level of $25,000 and $35,000 for older Australians is too low.
“The low concessional contribution cap base, together with the absence of adequate indexation, will deny many thousands of Australians, who typically have a greater financial capacity to save for retirement later in life, the opportunity to do so,” Ms Slattery said.
SPAA is also pushing for the Coalition to reverse its decision to repeal the LISC to ensure equity in the Australian super system.
“The LISC helps underpin the superannuation system by ensuring that those earning under $37,000 a year do not pay more tax on their compulsory superannuation contributions than they do on their income,” Ms Slattery said.
“This maintains the concessionality of the superannuation guarantee contributions for low-income earners, essential for ensuring the superannuation system is equitable.”