Repeal the 10 per cent rule

The Institute of Public Accountants (IPA) is calling on the Government to repeal the legislation that prohibits a personal concessional member contribution where the member earns more than 10 per cent of their income from employment services.

“We see no valid reason for the restriction on members making personal concessional contributions,” said IPA chief executive officer, Andrew Conway.

“This prohibition is inequitable for a number of Australians.  For example, a person who may have investments that provide passive income and also works part-time to supplement that passive income is limited to the superannuation contributions made by their employer.

“Similarly, small business owners who work part-time will not be able to claim tax deductions for super contributions if their income as an employee exceeds 10 per cent of the contribution.

“The IPA believes the source of the concessional contribution should not matter; and this is one piece of legislation that should be repealed as soon as possible.

“Australians should be subject to a concessional contributions cap that does not discriminate against the source of the contributions,” said Mr Conway.