Carbon tax changes impact super

ASFA/superannuation-funds/association-of-superannuation-funds/superannuation-contributions/australian-taxation-office/treasury/

18 July 2011
| By Mike Taylor |
image
image
expand image

The Government’s carbon tax proposals and the consequent increase in the tax-free threshold has significant implications for low income earners making superannuation contributions, according to the Association of Superannuation Funds of Australia (ASFA).

In a submission to the Treasury filed this month, ASFA has pointed out that while the higher tax-free threshold will alleviate the need for low-income earners to file a tax return, they will still be required to do so for the purpose of accessing a superannuation contribution rebate.

It said the issue would need to be considered as part of the implementation of the Government’s carbon price announcement.

The submission suggested one possible mechanism might for the Australian Taxation Office to use information from payment summaries issued by employers to establish eligibility for the rebate along with the use of tax return information.

ASFA also suggested that special administrative arrangements be considered for workers engaged under the disability services award.

“ASFA requests that consideration be given to the design of administrative arrangements that address the plight of these people such that they also can benefit from the rebate,” it said.

The superannuation group said it strongly supported the proposal to enable superannuation funds to compensate low-income earners for the impact of contributions tax on their retirement savings.

Homepage

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS