The Federal Government has looked to play up the positives in its superannuation Budget changes and the manner in which they have helped lower income earners and those with interrupted work patterns.
Amid Federal Election campaigning, which has focused on negatives such as the lowering of concessional contribution caps and claims of retrospectivity, Assistant Treasurer, Kelly O’Dwyer, has used an opening address to Money Management’s sister publication, Super Review superannuation forum to point to the positives.
Addressing an audience of superannuation fund executives and professionals at Sydney’s Hilton Hotel, O’Dwyer reinforced that the purpose of superannuation would be legislated by a re-elected Turnbull Government and that one of the consequences of that would be eliminating the use of super for tax minimisation and estate planning purposes.
She said that while the reduction in the concessional contribution caps had achieved much of the media attention in the post-Budget period, she believed more needed to be said about the manner in which the policy changes had helped people on lower incomes and with interrupted work patterns, particularly women.
The minister pointed out that from 1 July, 2017, people with superannuation balances under $500,000 would have greater access to the concessional cap and would be able to rollover their unused annual caps over five years and use them to make catch-up contributions.
O’Dwyer also noted that contribution rules for older Australians would also be simplified and that anyone under 75 would be able to claim an income tax deduction up to the $25,000.
The minister also referenced the Government’s move to effectively retain low income concessions via the Low Income Superannuation Tax Office, pointing out that this would assist 3.3 million people, two million of whom were women.
O’Dwyer acknowledged that some of the Budget changes would reduce some of the very “generous tax concessions” available to those on high incomes or with large superannuation balances.
But she said this was appropriate and better met the objective of providing income in retirement o substitute or supplement the age pension.
“It should be noted that 96 per cent of the population will be unaffected or better off,” she said.
