Let younger members boost their superannuation, says CEPU

1 March 2012
| By Tim Stewart |
image
image
expand image

The $25,000 contribution cap for workers under 50 is preventing younger 'fly-in-fly-out' workers from boosting their superannuation when they have the chance, argues the Communications, Electrical and Plumbing Union (CEPU).

CEPU national secretary Peter Tighe said some of his members had 'fly-in-fly-out' jobs on major projects that paid very well, but "they are the sort of jobs that don't necessarily last".

However, workers who are under 50 will be penalised with a tax rate of 31.5 per cent if they put more than $25,000 into superannuation over a financial year, Tighe said.

"These are workers who could be boosting the superannuation system, and supporting the national infrastructure that industry super funds, in particular, specialise in," he said.

Many CEPU members are keen to support the superannuation system over "less productive investments like property", and the Government should be doing everything it can to help them, Tighe said.

"Superannuation Minister Bill Shorten should look at lifting the cap as soon as possible, because every Aussie worker who is able to plough extra money into super during their working life is one less burden on the tax system in their retirement," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

9 months ago
Kevin Gorman

Super director remuneration ...

9 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

9 months ago

The superannuation industry has celebrated the passing of a bill that will provide super contributions on government-funded parental leave....

20 hours ago

The sovereign wealth fund has shed light on its voting activity in financial year 2024, which saw it take a stand against Woodside’s climate plan and numerous ASX 200 rem...

1 day 14 hours ago

A court has thrown out ASIC’s allegation that superannuation trustee Rest made false or misleading statements about the ability of its members to roll over funds to anoth...

1 day 20 hours ago

TOP PERFORMING FUNDS