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
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
