More tax advantages urged for super
The Association of Superannuation Funds of Australia (ASFA) has used its submission to the Henry Review of Taxation to argue that virtually all Australians should be placed in a tax-advantaged position with respect to superannuation.
ASFA used its pre-Budget submission to the Government to outline the contents of its approach to the taxation review, and said all Australians should be covered by compulsory superannuation or provided with superannuation credits.
It said superannuation contributions are preserved until age 60 and that, on this basis, individuals should be compensated for their lack of access by being given a tax advantage on their superannuation contributions such that the rate of tax was lower than their marginal rate.
As well, ASFA claimed that, given the need to improve adequacy and reach a higher effective savings rate, additional contributions by individuals needed to be encouraged.
“To achieve this, individuals should be given a tax advantage on their superannuation contributions such that the rate of tax is lower than their marginal rate,” it said.
“All Australians should have equal ability to make tax-advantaged contributions to super,” ASFA said. “Where an individual’s employer does not offer salary sacrifice, other tax advantages should be offered so that the individual is not worse off.”
AUTHOR
Mike Taylor
Recommended for you
The winners have been announced for the 2025 Super Fund of the Year Awards, held in Melbourne on 26 November.
Australian Ethical Superannuation has seen additional licence conditions imposed on it by APRA over the fund’s expenditure management.
The fund has strengthened its leadership team with three appointments to drive its next phase of growth and innovation.
ASIC and APRA have warned many trustees have failed to meaningfully improve retirement strategies despite the retirement income covenant being in place for three years.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
220.82 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
110.57 3 y p.a(%)
3
Quay Global Real Estate Fund (Unhedged) Active ETF Hedged
89.04 3 y p.a(%)
4
SGH Income Trust Dis AUD
80.18 3 y p.a(%)
5
Global X 21Shares Bitcoin ETF
76.11 3 y p.a(%)
