The Association of Superannuation Funds of Australia (ASFA) is urgently compiling an up-to-date analysis on equity of tax concessions in superannuation following the passage of the Minerals Resource Rent Tax Bill through the House of Representatives.
The mining tax will support the increase in the Superannuation Guarantee (SG) to 12 per cent, as well as a low-income earners super tax rebate.
However, ASFA said the current models do not take into account the new low-income earners rebate.
“Our concern is that the position taken by the Green’s and their comments in relation to the equity tax concessions relies on old numbers and they date back to 2005-6. Those numbers where done when the Costello-powered government allowed those large $1 million payments into Super, so the numbers are skewed,” ASFA chief executive Pauline Vamos said.
“We believe that any public policy must be based on independent, objective and correct information and so we are now addressing this issue by putting together, urgently, updated figures so that the Green’s can make their decision based on proper amounts.”
Vamos said the association hopes to compile updated figures in the coming weeks.
“When you look at the overall taxation concessions, and when you look at contribution caps, the equity in the system is fairly even because lower income earners are more likely than not to be on the age pension anyway,” she said.
“They are also getting the low income rebate, and so the public policy around superannuation is getting middle income earners (the $80-150,000 family income group) to be independent in retirement. This is not about the wealthy.”
Such a debate is an important step towards getting compulsory superannuation contributions increased to 12 per cent, Vamos said.
“An increase in the SG will take the pressure off the age pension and assist more working Australians to a better quality of life in retirement,” she said.
“Boosting superannuation also boosts the Australian economy, increasing the nation’s GDP, creating jobs and providing much-needed private and public infrastructure investment.”
