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ASFA calls for super tax dumping
With the , continuing to foreshadow the Government’s desire to deliver further tax cuts, the Association of Superannuation Funds of Australia(ASFA) has used its pre-Budget submission to argue for the elimination of superannuation contributions tax.
The submission, filed with the Treasury in mid-December, argues that the Australian economy is now better placed than at any time in recent history to allow for a superannuation tax break.
It said in contrast to the situation that had prevailed in the late 1980s, the current budget outlook was very different with a run of substantial budget surpluses in recent years and more in prospect.
“This provides an opportunity to reduce or eliminate the amount of tax Australians pay on contributions to their superannuation,” the submission said.
ASFA has also argued that there would be long-term macroeconomic advantages from eliminating the tax on superannuation contributions, including increasing national savings through the encouraging of additional contributions, thereby reducing the current account deficit.
“In the current economic environment an option of cutting the tax on superannuation contributions rather than personal income tax would also help to contain household consumption — and housing interest rates — at an appropriate level,” the submission said.
AUTHOR
Mike Taylor
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