POWERED BY MOMENTUM MEDIA
SPAA urges concessional cap increase above $35,000
The SMSF Professionals' Association of Australia (SPAA) is calling for an increase in the concessional contribution cap above the current $35,000 to allow superannuation savers to contribute more.
SPAA wants the Coalition Government to increase the cap in a bid to make Australians self-sufficient in retirement.
"The recent increase from $25,000 to $35,000 was welcome but SPAA strongly believes the cap needs to be higher to allow superannuation savers to be able to make greater concessional contributions," SPAA CEO Andrea Slattery said.
"This is especially relevant to women and those with broken work patterns as a higher concessional cap will give them the chance to contribute more to superannuation at a time when they can afford it most."
Under the current system, people aged 60 and over will be able to make up to $35,000 of concessional contributions to their superannuation in 2013-14, and from July 1, 2014, people aged 50 and over will also be able to contribute $35,000.
The decision, which was announced in April, became legislation in May this year.
Slattery believes the tax concessions for contributions are a vital part of the Australian superannuation system policy that leaves Australians with a reasonable amount for a sustainable retirement.
"The concessionally taxed contributions to superannuation give people the incentive they need to forgo current spending in favour for saving for retirement," she said.
She said the SPAA had been advocating for a higher contribution cap than the $25,000 limit since it was slashed to that level in 2009, particularly for those over 50. SPAA made submissions in 2011 that supported the introduction of a $35,000 cap.
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(%)
