ACOSS Statement: superannuation changes announced

Statement by ACOSS CEO Dr Cassandra Goldie on the Government’s superannuation changes announced on Thursday 15 September 2016

“The proposed caps on high-end super are sensible, if modest, reforms and we welcome the Government adopting our proposal to halve the annual non concessional contribution cap from $180,000 to $100,000.

“However, we also called for removal of the measure that allows fund members to bring together three years’ worth of non-concessional contributions . This means that people can contribute up to $325,000 in any given year, which undermines the intent of the lower annual cap, and will overwhelmingly benefit high income earners.

“We’re pleased that the Government is continuing with reducing the cap on concessional contributions to $25,000, but It’s disappointing that they’re pursuing the ‘catch-up’ measure. Again, this undermines savings delivered by the lowering of the cap and largely benefits people on high incomes.

“While low income earners will get a 15% tax refund on super contributions, ACOSS is calling for a doubling of that refund so that low-income earners get the same tax benefit as higher income earners.”

Contact: Australian Council of Social Service, 0419 626 155