POWERED BY MOMENTUM MEDIA
Don’t isolate specific tax levers: ASFA
The Government should not isolated specific tax levers when considering super tax changes, a super body believes.
The Association of Superannuation Funds of Australia (ASFA) has urged the Government to take a holistic approach.
ASFA chief executive, Pauline Vamos, said there were opportunities to look at the level of tax in the super system but it was vital to consider the objectives of equity, sustainability, and the delivery of adequate incomes throughout retirement.
"Reducing the threshold for a higher rate of tax on contributions to $180,000 in income a year could well be an option that the government is considering," Vamos said.
"People's incomes change over their lifetime — a level of income today may not necessarily be an accurate indicator of retirement savings — and we need to ensure that people have the ability to save for a comfortable retirement.
"The impact of any tax change on future expenditure on the Age Pension also needs to be taken into account."
Previously, ASFA suggested the super system should stop providing taxpayer support for accumulating retirement savings at an account balance of $2.5 million.
ASFA has also called for the retention of the Low Income Superannuation Contribution (LISC) scheme to improve the equity of the system.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
