Treasurer Scott Morrison has reiterated that the government believes there should be greater flexibility with super contributions for those who have disruptions to their working life.
Mr Morrison suggested the current superannuation system effectively penalises Australians who take breaks from work and attempt to “regather the pace” with their super contributions.
“What we see is the need to have a system which ensures people can be independent in their retirement and not drawing on a pension. That's why I've talked about the need for greater flexibility on the contributions side for people who have disruptions to their working life,” Mr Morrison said in an interview with Sky News.
“I'm not just talking about women. We all know carers in our own lives who, through no fault of their own – through the worst deal of a hand in life's experience – find themselves caring full time for a partner, a loved one, a child, a parent and it's very hard for them to catch up. It's very hard for them to get back and regather the pace,” he said.
Mr Morrison also stressed the government is set on ensuring that superannuation is not a vehicle for intergenerational wealth transfer.
“So, what you'll hear from us on superannuation is [that it is] a program to help people be independent in their retirement and give them more opportunities to do that and have the tax incentive very focused on achieving that goal. Not to develop inheritance pools or things like this, but to ensure that people can be independent in retirement,” Mr Morrison said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all