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SPAA wants Government to address accurate costing of super tax concessions

12 February 2014: The need for a higher concessional cap and the accurate costing of superannuation taxation concessions are two key issues the SMSF Professionals’ Association of Australia (SPAA) raises in its submission to the Federal Government’s May Budget.
SPAA also wants the Government to explore polices that will assist people with broken work patterns improve the adequacy of their superannuation, as well as expressing its strong opposition to the Government’s decision to abolish the Low Income Superannuation Contribution (LISC).
SPAA CEO Andrea Slattery says: “For SPAA, these are the four significant superannuation issues that the Government needs to address.
“In our opinion the current general concessional contribution cap level of $25,000 and $35,000 for older Australians is too low to facilitate adequate savings for retirement.
“The low concessional contribution cap base, together with the absence of adequate indexation, will deny many thousands of Australians, who typically have a greater financial capacity to save for retirement later in life, the opportunity to do so.
“On online pharmacy in ontario superannuation tax concessions, SPAA strongly advocates that its fiscal cost be considered in the context of the three pillar retirement income system to accurately reflect the long-term nature of superannuation.
“SPAA has previously argued that the Treasury tax estimates what doses do viagra come in method of measuring the value of these concessions is biased against them and misinforms the kamagra oral jelly grape policy debate.
“Although the cost of the concessions has not been a prominent issue with this Government, we still believe that it is important that their cost to Government is measured in an accurate and appropriate fashion. This will better inform Government, the public and the superannuation industry when forming future retirement active discount pack cost income policy.” Slattery says equity in superannuation is critical, and as such SPAA urges the Federal Government to reverse its decision to repeal the LISC.
“The LISC helps underpin the superannuation system by ensuring that those earning under $37,000 a year do not pay more tax on their compulsory superannuation contributions than they do on their income.
“This maintains the concessionality of the Superannuation Guarantee contributions for low income earners, essential for ensuring the superannuation system is equitable.”
She says SPAA is urging the Government to address the superannuation adequacy of people with broken work patterns.
“The issue of broken work patterns disproportionately affects female workers, who often take time out of the work force to raise families, resulting in many females having inadequate superannuation balances for retirement.
“Female workers also have lower average wages and a higher incidence of part-time work, which reduces their ability to make contributions to save for retirement,” Slattery says.

About SPAA

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.