ASFA welcomes super tax review
The Association of Superannuation Funds of Australia (ASFA) has welcomed confirmation this morning that the Federal Government will ensure superannuation is included in its international benchmarking of the Australian taxation system.
ASFA chief executive Philippa Smith told Money Management ’s sister publication Super Review that superannuation needed to be part of the review process in circumstances where changes to marginal tax rates were too often viewed in isolation to what actually encouraged people to save.
“It is a good idea for the Government to look at the Australian taxation system and how it compares with other nations within the Organisation of Economic Cooperation and Development, but superannuation needs to be a part of that equation,” she said.
Smith’s comments come as a major national newspaper this morning reported that the chair of the Board of Taxation, Dick Warburton, who will co-head Treasurer Peter Costello’s international review, revealed an examination of the viability of the 9 per cent superannuation contributions tax would be investigated as part of the inquiry.
Warburton’s revelations come only weeks after the Minister for Finance, Senator Nick Minchin, canvassed the removal of the 15 per cent superannuation contributions tax — something that was almost immediately dismissed by the Treasurer, Peter Costello.
The terms of reference for the international review state that the study will provide information on the overall level of taxes, the tax mix and the base rates within each type of tax.
It said that the study would cover all forms of taxation collected in Australia at national, state and local government levels — something that would ensure the inclusion of all types of taxation applying to superannuation.
Among those appointed to undertake the comparative tax study is the chief executive of the Australian Chamber of Commerce and Industry, Peter Hendy, who in late January supported Senator Minchin’s call for the removal of the 15 per cent superannuation contributions tax.
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
