First tranche of superannuation reforms welcomed

Tax & Super Australia welcomes the release of the first tranche of draft legislation implementing a range of superannuation system changes announced in the 2016-17 Budget. First tranche of superannuation reforms welcomed.

Tax & Super Australia CEO Moti Kshirsagar noted that proposed changes simplify the acceptance of contributions and remove several restrictions currently in place on contributions for members of superannuation funds in the age group of 65 to 74.

“Another positive development is the extension of deductibility of personal concessional contributions to all individual taxpayers irrespective of their work arrangements. This will significantly benefit self-employed individuals and contractors, who are in many cases precluded from getting a deduction for contributing to superannuation under the current rules.”

The changes in the exposure draft legislation are a positive response to more prevalent flexible working arrangements and longer working lives.

“Continuation of concessions for low income earners is essential to sustain and improve the fairness of the superannuation system,” Kshirsagar says. “The proposed Low Income Super Tax Offset (LISTO) continues a previous measure called Low Income Superannuation Contribution (LISC).”

“We are continuing to advocate for a efficient and sustainable superannuation system in Australia. Legislating the object of the superannuation system is a first step in bringing a sense of cohesion to superannuation reforms.”

The stated primary objective of superannuation is to provide income in retirement to substitute or supplement the age pension.

 

ENDS

Note to editors: If you’d like more information about this topic or to schedule an interview, please call Tax & Super Australia’s Business Services Manager Lisa Greig  on (03) 8851 4505 or email lgreig@taxandsuperaustralia.com.au.
Tax & Super Australia, previously known as Taxpayers Australia, is a member-based organisation actively representing its members’ views as well as providing expert commentary on matters affecting the wider taxpaying community.