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Concessional cap falls short for seniors
National Seniors Australia has welcomed the Federal Government's super reform announcement but says the concessional contributions cap falls short of its expectations.
The increase in the concessional cap from $25,000 to $35,000 for over 60s did not match up to the increase to $50,000 the Government promised for 2014, according to National Seniors chief executive Michael O'Neill.
"The $10,000 increase in the $25,000 superannuation concessional cap for people aged 60 and over is welcome," he said.
"But it is still $15,000 short of the $50,000 cap average earners had counted on last year and the Government had promised for 2014."
The cap was halved in 2011 and extended for two years with expectations it would be bumped back up to $50,000 in 2014 for people over the age of 50, O'Neill said.
The Australian Institute of Superannuation Trustees welcomed Government's changes to super as a step in the right direction, but also indicated last week it would continue to lobby for upping the concessional cap to $50,000.
"To avoid a repeat of this type of politicised speculation, future debate must occur within a wider, transparent, cross-portfolio retirement incomes strategy," O'Neill said.
"This is something National Seniors has repeatedly called for."
O'Neill said speculation regarding the raiding of super had created nervousness among older Australians and he applauded the Government for "coming clean" last week.
"We welcome that the changes are not retrospective and that grandfathering applies to some of them," he said.
"The $100,000 retirement phase tax-free earnings threshold which equates to a super balance of around $2 million appears fairly generous."
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