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Call for deductibility of personal contributions
The Federal Government has been urged to consider extending the tax deductible status of personal superannuation contributions to all income earners, including employees who currently receive employer superannuation support.
The call has been made by Chartered Accountants Australia and New Zealand in its pre-Budget submission in which it argues that it is time to move on from the so-called "10 per cent rule" under which only taxpayers who earn less than 10 per cent of their assessable income from an employer source can claim a tax deduction from personal superannuation contributions.
The submission argues that many employers currently allow their employees to salary sacrifice additional superannuation contributions effectively overcoming the inability of employees to claim their own tax deduction.
"Effectively this means that employees whose employers do not allow them to salary sacrifice are disadvantaged," it said. "Australians trying to save for their retirement should not be deprived of superannuation concessions by working for an employer that does not allow them to salary sacrifice into superannuation."
The submission said it would be more equitable and efficient to permit employees to make personal concessional contributions in order to top-up employer contributions.
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