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AIST urges Govt to retain LISC
The Australian Institute of Superannuation Trustees (AIST) has renewed its call for the Abbott Government not to jettison the former Labor Government's Low Income Superannuation Contribution Scheme (LISC).
AIST chief executive Tom Garcia, who made known his organisation's views on the LISC initiative during a Super Review forum held in the weeks following the election, last week followed that up with a formal statement saying it represented "a much-needed equity measure in Australia's compulsory super system".
That statement was contained in a submission to the Government on the removal of the Minerals Resource Rent Tax, which was intended to help underpin the LISC initiative.
Garcia said the scheme corrected a long-standing tax anomaly in the super system whereby low income earners were paying more tax on their take-home pay than their super.
"This scheme isn't about a hand-out or welfare: it's about righting a wrong," he said. "Low income earners are entitled to a tax benefit on their compulsory super contributions just like the other two thirds of working Australians."
Mr Garcia said LISC was one of the best policy measures since compulsory superannuation was introduced, noting that more than four times as many Australians benefitted from LISC than the Co-Contribution scheme.
"The great thing about the LISC scheme is that it is well targeted, it automatically benefits millions of workers and it does not require individuals to make voluntary contributions," he said.
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