A consensus is emerging among the major banks for the Government to reconsider the Low Income Superannuation Contribution (LISC), to include superannuation within the Paid Parental Leave (PPL) scheme, and to look at more flexibility around concessional contribution caps.
The Commonwealth Bank has filed a submission with the Senate Inquiry into the Economic Security for Women in Retirement which substantially reflects the views expressed in a submission filed by the National Australia Bank.
The Commonwealth Bank submission recommends that the Government considers modifying the concessional contribution caps to allow individuals with interrupted work patterns greater flexibility in applying their caps and also undertake further research on retaining the low-income super contribution including a including a detailed cost/benefit analysis.
The submission also calls on the Government to undertake further research on the costs and benefits to employers and employees of removing the $450 Superannuation Guarantee contributions monthly threshold and to consider extending the PPL scheme to include superannuation payments.
Not unlike the NAB submission, it also calls for the introduction of consistent tax deductibility for financial advice and the continued implementation the National Financial Literacy Strategy by encouraging broad involvement of stakeholders.
The submission also calls for the removal of regulatory barriers impeding the cost effective development of income stream products which address longevity risk.
Commenting on the submission, group executive, wealth management, Annabel Spring said a combination of lower financial literacy, lack of confidence in financial capabilities, and challenges in the workplace meant women might be prevented from retiring comfortably.
“We believe that a package of complementary superannuation and non-superannuation reforms is necessary and we look forward to working with the Committee to develop options,” she said.
