POWERED BY MOMENTUM MEDIA
Shift super tax emphasis – accountants
The maturing of the superannuation guarantee regime means it may be time for the Government to review the appropriateness of the removal of the end benefits tax from age 60, according to major accounting group CPA Australia.
In its submission addressing the Tax White Paper discussion points, CPA Australia said the removal of end benefits tax from age 60 may have been appropriate at the time of its announcement as a short term measure but this may not be the case today.
The submission said the measure may have been appropriate at the time of its implementation, because "current and imminent retirees had not had access to a mature SG system".
"However, as the system matures it may be appropriate to rethink this position and consider shifting some of the tax burden from the contributions phase to the benefits phase, albeit with a long transition phase," the submission said.
It said that, ideally, the most equitable retirement savings system would tax income in the hands of the individual when it was actually received – that is, contributions would be tax exempt, fund earnings would be tax exempt or concessionally-taxed, and benefits would be taxed.
"What is known as the EET model (exempt, exempt, taxed) is the most common taxation model used in the majority of OECD countries," the submission said.
"Australia is unique in taxing retirement savings at all three points."
Recommended for you
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
