The SMSF Professionals’ Association of Australia is calling for a higher concessional contribution cap for superannuants as part of their pre-Budget submission to the federal government.
According to SPAA, the current concessional cap of $25,000 – and $35,000 for older Australians – is too low to facilitate adequate retirement savings.
“The low concessional contribution cap base, together with the absence of adequate indexation, will deny many thousands of Australians, who typically have a greater financial capacity to save for retirement later in life, the opportunity to do so,” SPAA chief executive officer Andrea Slattery said in a press release yesterday.
The DIY super lobby group is also calling for more accurate reporting on the cost of superannuation taxation concessions, arguing that current Treasury tax estimates are biased against them.
“On superannuation tax concessions, SPAA strongly advocates that its fiscal cost be considered in the context of the three pillar retirement income system to accurately reflect the long-term nature of superannuation,” Slattery said.
“Although the cost of the concessions has not been a prominent issue with this government, we still believe that it is important that their cost to government is measured in an accurate and appropriate fashion. This will better inform government, the public and the superannuation industry when forming future retirement income policy.”
The submission also makes clear SPAA’s opposition to the government’s decision to repeal the Low Income Superannuation Contribution. They say the concessional measure is essential for ensuring an equitable super system.
“The LISC helps underpin the superannuation system by ensuring that those earning under $37,000 a year do not pay more tax on their compulsory superannuation contributions than they do on their income,” Slattery said.
SPAA is also urging the government to address the superannuation options for people with broken work patterns, such as women forced to leave work to raise families.