PLAYING WITH SUPER IS A TRADE OFF
The reduction on concessional caps to $25,000 per annum for all individuals is a trade-off according to the Institute of Public Accountants (IPA).
“While some measures are positive, such as the Low Income Superannuation Tax Offset and extending access to concessional contributions to those partially self-employed/partial wage earners; there are other measures which present a backward step, such as the reduction on concessional caps to $25,000 per annum for all individuals," said IPA chief executive officer, Andrew Conway.
“Limiting the capability to contribute to the adequacy of superannuation undermines the objectives of the system to provide income in retirement to substitute or supplement the Age Pension.
“We recognise the Government’s difficult position in addressing the Budget deficit but in the longer term we need to build self-sufficiency in the superannuation system.
“Otherwise, we will face the ongoing budget pressures for government supported pensions; money that could be well spent elsewhere,” said Mr Conway.