POWERED BY MOMENTUM MEDIA
ASFA urges help for low-income earners
The Federal Government has been urged to use the upcoming Federal Budget to change the rules around superannuation to make it more attractive for low-income earnings via a contributions tax rebate.
In a pre-Budget submission filed with the Federal Treasury this week, the Association of Superannuation Funds of Australia (ASFA) argued that, currently, there is no tax advantage for those earning less than $35,000 a year for employer or salary sacrifice contributions.
ASFA chief executive Pauline Vamos said that if a contributions tax rebate was given to someone earning $30,000 a year, their retirement savings would go from $145,000 to $171,000 over 35 years.
She said that ASFA had estimated the annual cost to the Budget would be around $600 million a year and benefit around two million workers at the same time as lower expenditure on the age pension.
The ASFA submission also recommended that middle-income earners be assisted by a partial rebate of contributions tax or an enhancement of the existing superannuation co-contributions regime.
AUTHOR
Mike Taylor
Recommended for you
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.
Hostplus’ MySuper Balanced option delivered significantly stronger returns in 2024–25, bouncing back from the previous year when its cautious stance on listed markets came at a cost to members.
Introducing reforms for strengthening simpler and faster claims handling and better servicing for First Nations members are critical priorities, according to the Super Members Council.
The Commonwealth Bank has warned that uncapped superannuation concessions may be “unsustainable” and has called for the introduction of a superannuation cap.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
