LISTO most critical super tax change
The impact of the Low Income Super Tax Offset (LISTO) is 20 times that of nearly all other superannuation tax measures, according to the Australian Institute of Superannuation Trustees (AIST).
The super body urged all federal parliamentarians to support tax changes to super that improved retirement outcomes for low income earners.
AIST executive manager for policy and research, David Haynes, said LISTO was the most critical super tax change in the recently introduced legislation as it impacted more than three million Australians, or about 20 per cent of fund members.
"Without support for this measure, more than three million low income Australians, of which nearly two thirds are women, will be paying more tax on their super than their take home pay from next July," Haynes said.
"The LISTO is an equity measure that is fundamental to the integrity of the super system and it is therefore essential that this measure is legislated and not caught up in the political crossfire."
AIST said the transfer balance cap would impact less than one per cent of fund members, while the concessional super contribution change would impact 3.5 per cent, the reduction of Division 293 one per cent, the reduction of annual non-concessional cap less than one per cent, and the deduction of personal contributions only to the self-employed.
"While important and welcome, the other tax measures are less significant in terms of their impact on individual Australians than the LISTO, which will boost the super of low income earners by up to $500 a year," Haynes said.
"Based on Treasury estimates, the impact of the LISTO on fund members is nearly 20 times that of nearly all the other tax measures."
Recommended for you
ASIC data shows the number of smaller AFSLs with less than $50 million in revenue has increased by 25 per cent in the past year, but the regulator believes they are still under reporting breaches.
Former financial adviser and Coalition backbencher Bert van Manen has introduced a bill in Parliament, building on Michelle Levy’s good advice duty and calling for SOAs to be scrapped.
Following its recent partnership with Otivo, Colonial First State has now announced an arrangement with Viridian Advisory to offer unadvised members with one-off, topic-based financial advice.
Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand.
