Higher cap will help people be self sufficient in retirement
4 November 2013: The SMSF Professionals’ Association of Australian (SPAA) wants the Coalition Government to increase the concessional contribution cap above the current $35,000 limit to help meet the aspirations of all Australians wanting to be self-sufficient in retirement.
SPAA CEO Andrea Slattery says: “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.
“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.
“There is now an opportunity for the new Coalition Government to take on the challenge of increasing the cap and providing an opportunity for more Australians to establish a self-sufficient and dignified retirement for themselves.”
As the system now stands, in 2013-14 people aged 60 and over will be able to make up to $35,000 of concessional contributions to their superannuation, and from 1 July 2014, people aged 50 and over will be able to contribute $35,000 as well.
This decision was announced by the former Government on 5 April 2013 and became legislation on 30 May 2013.
Mrs Slattery says: “SPAA had been advocating for a higher contribution cap than the $25,000 limit, especially for those over 50, since the contribution cap was cut in 2009. SPAA coordinated an industry letter and made submissions in 2011 that supported the introduction of a $35,000 cap.
“We view the tax concessions for contributions as the essential key to the policy design of the Australian superannuation system that encourages Australians to save a reasonable amount for a sustainable retirement. The concessionally taxed contributions to superannuation give people the incentive they need to forgo current spending in favor for saving for retirement.”
The SMSF Professionals’ Association of Australia (SPAA) is the authoritative voice for the self-managed superannuation fund (SMSF) sector. SPAA, which represents professionals providing a range of services across various disciplines in the complex area of SMSFs, is an advocate for the highest professional standards and competence to ensure SMSF trustees always receive the best possible advice.
Contact for interviews:
M: 0417 898 317