Industry calls for super tax cuts

By George Liondis

THE Howard Government has been urged to make further cuts to the superannuation tax rate, as well as confirm funding to deliver on its election promises to the financial services industry.

The message was delivered by the Investment and Financial Services Association (IFSA) in a pre-budget submission to the Government earlier this month.

IFSA chief executive Richard Gilbert said the association was eagerly awaiting the budget announcement to confirm that funding would be available to reduce the super surcharge from 15 to 7.5 per cent by 2006-07 — a move promised by the Coalition as part of its re-election campaign last year.

“John Howard has delivered some promises to the industry and he has a record of delivering, so we expect to see some announcements in the Budget,” he said.

The association also called for a cut in the tax rate for super funds from 15 per cent to 13 per cent and for an expansion of the superannuation co-contribution scheme.

Gilbert said superannuation, particularly the introduction of choice, would be a major focus for both fund managers and advisers this year.

“There is going to be a lot of media attention around choice and lots of claims and counter claims,” he said.

“Our main objective is to ensure that choice is delivered with integrity.

“We also want people who don’t understand choice to seek advice.”