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Palmer urged to support LISC
Some of the most prominent voices in the superannuation space have called on Clive Palmer to back the continuation of the low income super contribution (LISC) scheme.
More than 30 industry voices, including Women in Super national Chair Cate Wood and the Australian Institute of Superannuation Trustees’ CEO Tom Garcia, wrote a letter to the Palmer United Party (PUP) leader to stress the importance of the scheme, which they said was relied on by many of the cohorts that made up the PUP faithful.
The measure gives workers who earn $37,000 a year or less a rebate of up to $500 on tax paid on super contributions.
It is reportedly received by around three million Australians.
“It is surely unfair that while the highest paid workers receive a tax concession of 30 per cent, the lowest-paid would be penalised for saving for their retirement,” the letter reads.
“Funding of LISC should be prioritised, as it benefits a third of the Australian workforce and is a crucial policy initiative in working to close the gap in retirement savings between men and women.”
The signatories asked Palmer to only back the MRRT repeal if the funding of the LISC was detached from it.
Organiser of the letter, National Chair of Women in Super, Cate Wood, said the LISC was a crucial restorer of equity in the superannuation system.
The LISC is particularly beneficial to low-income earning women, particularly as women are more likely to live longer and therefore require higher retirement balances, she said.
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Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
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