Government pushed to raise income threshold for super
A consumer advocate group has urged the government to re-examine the current $450 income threshold for super contributions, with the current threshold capturing certain members inappropriately.
Speaking at a public hearing, Choice director, campaigns and communications, Erin Turner told the Productivity Commission that it would make sense for the government to review the monthly income threshold for superannuation contributions.
“We don’t have a view on the firm number that the threshold should be, but it does seem quite odd that the number wasn’t indexed because it is increasingly capturing more and more people,” Ms Turner said.
As part of a review into the threshold amount, the government also needs to consider how the system can better deal with unintended multiple accounts, the director added.
“I’m sure a number of people are captured inappropriately where they do have multiple accounts, perhaps multiple jobs, multiple contracts, and they would sit above the threshold if it was accumulated into the one fund. So, there’s a couple of elements to this and we would very much welcome a conversation about lifting the threshold.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.