Govt shouldn't 'jump early' on super: AIST

Govt shouldn't 'jump early' on super: AIST

With the tax inquiry currently underway, the government should hold off making changes to the superannuation tax concession rules, says AIST.


Speaking in Sydney on Wednesday, Australian Institute of Superannuation Trustees (AIST) chief executive Tom Garcia said there are unlikely to be any changes to super concessions in next week's federal Budget.

The government should be wary of "jumping early" on the issue, Mr Garcia said.

Mr Garcia said that the future objectives of the superannuation system need to be understood.

“The issue is that as a government, as an industry, and as a country, we don’t know what we’re trying to hit in 50 years’ time.

“Then how do we know what levers to pull?” he asked.

Mr Garcia pointed out that the government and industry must realise what the objective of superannuation is and subsequently implement appropriate change.

“What is the model that will deliver us the outcome?” he asked. “That is why we have been rattling on about the objectives.”

Moreover, Mr Garcia said that the superannuation system can’t be used as a tool of tax avoidance.

“The super system can’t be sitting there as an easy way to minimise your tax and it can’t also be an inheritance system or transitions system between generations.

“That’s not what it’s designed for,” said Mr Garcia. 

 

Govt shouldn't 'jump early' on super: AIST
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