POWERED BY MOMENTUM MEDIA
Bar tax concessions from high super balances: ASFA
Those with very high account balances should not be eligible for superannuation tax concessions, the Association of Superannuation Funds of Australia (ASFA) argued.
The super body released a report proposing that once a super account hits a certain amount, questions arise as to whether the account holder should still be eligible for a tax concession to accumulate enough income for a “dignified retirement”.
Using the ASFA Retirement Standard, the report said account balances over $2.5 million per person should not be eligible for the same tax concession rates as someone below this amount.
ASFA CEO Pauline Vamos said this would ensure people are using their super for retirement rather than for estate planning purposes or wealth accumulation.
The report found 75 per cent of tax concessions applied to contributions go to those paying either 30 per cent or 38 per cent marginal tax rate.
But when it came to tax concessions in super investment earnings, a huge chunk of tax concessions flow to middle-to-high income earners, with 65 per cent going to those earning over $80,000 and 23 per cent going to those earning more than $180,000.
The report also recommended lifetime caps for non-concessional contributions should be introduced.
Currently people can contribute a maximum of $540,000 every three years in non-concessional contributions.
The report said lifetime caps would let people amass enough funds for a comfortable retirement while not providing tax concessions on earnings for very large balances.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
