POWERED BY MOMENTUM MEDIA
ASFA challenges Treasury data on superannuation
New research conducted by the Association of Superannuation Funds of Australia (ASFA) has challenged data being used by the Treasury.
The research - which examines government assistance for retirement incomes - claims the current tax expenditure estimates produced by the Treasury greatly overestimate the additional tax revenue that would result if current tax concessions for superannuation were abolished.
Indeed, the research paper - developed by ASFA's director of research, Ross Clare - claims concessional contribution caps have had a significant impact on contributions by upper income earners, reducing the ongoing cost of the tax concessions for contributions by over $3 billion a year compared to previous historical levels.
It said the Treasury tax expenditure estimates appeared to be based on the unrealistic assumption that if the investment earnings in superannuation accounts were taxed on the basis of each individual's tax rate, then there would be no discount for capital gains on assets held for more than 12 months.
"All of these factors taken together suggest that the tax expenditures for superannuation may actually be around half those reported in the Tax Expenditures Statement," the ASFA research analysis said.
The ASFA research paper also pours cold water on the recommendations contained within the Henry Tax Review arguing the adoption of the Henry Review proposals in regard to the taxation of superannuation contributions would lead to the introduction of considerable new forms of complexity in the taxation of superannuation.
"They would also lead to a reduction in take-home pay for most individuals and would reduce taxation collections by the Government," it said.
"The Henry Review proposals in regard to the taxation of superannuation fund investment earnings would also have a negative impact on taxation revenue for many decades, with unclear impacts on equity between fund members," the research paper said.
AUTHOR
Mike Taylor
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over 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(%)
