The blocking of the low income superannuation contribution (LISC) repeal by the Senate yesterday has been welcomed by industry representatives.
The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No. 2] was yesterday blocked by the Senate.
Speaking to SMSF Adviser, AMP SMSF’s head of policy, technical and educational services said leaving the LISC intact effectively means super fund members, including SMSF members, on modest incomes do not pay more tax on their superannuation guarantee (SG) contributions than their take-home pay.
“It also means higher super balances and ultimately less reliance on the aged pension,” Mr Burgess said.
Also speaking to SMSF Adviser, DBA Lawyers director Daniel Butler said there is a “widespread” feeling in the superannuation industry that the LISC scheme is a good policy move.
“Here, we’re talking about mainly battlers and people who may have broken work patterns like females. It’s a little bit of a boost to them,” he said.
The Institute of Public Accountants has long been arguing against the government’s plans to drop the LISC scheme.
“On equity grounds we support LISC as it restores some balance in favour of low income taxpayers who do not receive much of a tax concession when they make contributions to super,” the IPA’s senior tax adviser Tony Greco told SMSF Adviser.
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