Federal Budget's superannuation move may have unintended consequences
The Government's expected Federal Budget move to increase the superannuation contributions tax for wealthier Australians may not prove to be a sensible long-term move, according to Institute of Chartered Accountants in Australia superannuation specialist Liz Westover.
Commenting on speculation around the Budget move, Westover said it was capable of acting as an impediment to retirement incomes' self-sufficiency.
"In order to enable Australians to prepare and save for a comfortable retirement, the Government needs to continue to provide appropriate incentives for all earners, regardless of their income," she said.
"We need to ensure that those most likely to be able to support themselves in retirement are encouraged to do so.
"The last thing we need is too heavy a reliance on the aged pension, creating a greater burden on future governments and taxpayers," Westover said.
"The Government needs to consider the long-term effects of its decisions."
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