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First draft of super legislation released

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The government has released the first tranche of its draft superannuation legislation, which will enshrine the objective of the system and introduce a low income superannuation tax offset.

In a joint statement with Treasurer Scott Morrison, Financial Services Minister Kelly O'Dwyer said the draft legislation would enact the superannuation reforms announced in the 2016-17 budget.

The legislation will enshrine the objective of superannuation — that is, to "provide income in retirement that substitutes or supplements the age pension".

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The first tranche of the draft legislation will also introduce the Low Income Superannuation Tax Offset (LISTO).

"Around 3.1 million low income earners will have their superannuation savings boosted by the LISTO, including 1.9 million women," Ms O'Dwyer said.

"This change will ensure individuals do not pay more tax on their superannuation contributions than on their take-home pay."

The legislation will also allow people under 75 to claim a tax deduction for personal superannuation contributions "irrespective of their employment".

The changes will also seek remove restrictions that currently prevent people aged between 65 and 74 from making voluntary contributions to super.

The draft legislation also includes incentives to encourage people to make contributions to the super fund of a low income spouse.

Public submissions on the exposure draft and explanatory memorandum for the legislation close on Friday 16 September.

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First draft of super legislation released
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