Trustee lobby group blasts lottery exemption
The SMSF Owners’ Alliance (SMSFOA) has slammed a proposal, reportedly being considered by the government, for an exemption for superannuation contributions from lottery wins, calling it farcical and deeply unfair.
In a statement, SMSFOA chair Bruce Foy called the idea “the most absurd twist yet to a policy that is riddled with unfairness and unintended consequences”.
“Why should the lucky winner of a lottery get a break over hard working Australians who are doing their best to support themselves in retirement and avoid being a burden on the taxpayer?” he said.
“If you are fortunate enough to win the lottery and pay no tax on your winnings then good luck to you.
“But it would be totally unfair for you to then be able to make a larger contribution to your super than everyone else,” he said.
Last week, The Australian Financial Review reported on comments from Treasurer Scott Morrison confirming that windfalls stemming from ‘life events’, such as a lottery win, a divorce settlement or becoming eligible for a trust, would be exempt from the proposed $500,000 lifetime cap on non-concessional super contributions.
Mr Foy said that while the SMSFOA opposes the proposed back-dated limit of $500,000 on non-concessional contributions, it should apply to everyone if it is to remain in place.
He then suggested that the government should instead spend time reviewing the premise behind tax changes announced in this year’s budget.
“The government has an expenditure problem, not a revenue problem, but if tax changes are to be made they should be made to the general tax system and not just so as to retrospectively affect those who have attempted to be self-sufficient in retirement,” Mr Foy said.