POWERED BY MOMENTUM MEDIA
Accountants call for removal of contribution caps
Just days out from the Federal Budget, Chartered Accountants Australia and New Zealand superannuation leader, Tony Negline has advocated for key superannuation changes including removing the annual non-concessional contribution caps.
In an opinion piece to be published next week, Negline argues that removal of the annual non-concessional caps would enable people to invest their money in superannuation whenever they were able.
“Currently, there are annual caps on both the amount of concessional (before-tax) and non-concessional (after-tax) contributions that can be made into your super account,” he said. “The annual cap for non-concessional (after tax) contributions is $100,000 if your total super balance is less than $1.6 million.”
“$100,000 might seem like a lot, but there might be years every now and then when it is worth investing more than that sum, and at the moment you can’t,” Negline wrote.
He suggested that a fairer way for, for example, elderly people approaching retirement, or younger people on high incomes taking a career break that doesn’t break retirement plans, might be a lifetime contribution caps, to account for the various working patterns of Australians.
“To assume that every Australian will make constant contributions, at a constant rate throughout their working life, is just silly,” Negline wrote.
“The Government needs to remember that most people’s super contributions will only occur later in life, therefore a contribution cap needs to be set at a level that reflects this, not detracts from it.”
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
Good luck selling that to the Labor, which has flagged its desire to reduce the annual NC cap even further!