Superannuation tax concessions
Treasurer Scott Morrison says the Government will soon be making some superannuation policy decisions.
The Greens have indicated they are willing to work with the Government to change the superannuation tax concessions.
The SMSF Association says it would be “short-sighted” to cut the superannuation tax concessions based on their estimated cost in the Tax Expenditure Statement (TES).
The Association of Superannuation Funds of Australia (ASFA) has called on the Government to keep a “broad and holistic view” of the superannuation system when considering tax reform, rather than focussing on a narrow range of of tax changes.
Over $37 billion of tax revenue will be lost through the superannuation tax concessions in 2018/19, requiring “urgent action” according to the Labor Shadow Minister for Financial Services and Superannuation Jim Chalmers.
The Financial Services Council (FSC) has called for taxes on superannuation contributions to be changed, but not increased. Modelling released by the FSC suggests superannuation contributions be taxed at individual marginal tax rates, with a 20% tax rebate, instead of the current flat 15% contributions tax.
Industry Super Australia has recommended the Government reduce the superannuation contributions cap to $50,000 a year and abolish the concessional/non-concessional contributions distinction by introducing a flat 25% offset on contributions.