As long as the debate about the increase of superannuation concessional contributions caps for over 50s continues, untaxed schemes will not be affected by the proposed changes, according to GESB chief executive Michele Dolin.
Dolin said that there was no cap on contributions to untaxed schemes such as GESB’s West State Super scheme, but added this was offset by a ceiling on how much the retirement benefit was concessionally taxed.
“Currently, untaxed retirement benefits can be as high as $1.55 million before the top marginal tax rate is applied,” she said.
Despite this, Dolin said that the industry as a whole was supportive of extending the contributions cap, but expected there to be further discussion before the detail is finalised.
“Superannuation is the most tax-effective way to save for later life. A permanent extension of the contribution cap for taxed funds means that more people will be able to increase their retirement savings,” she said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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