Govt accused of reincarnating superannuation surcharge

taxation federal budget federal government

1 May 2012
| By Staff |
image
image
expand image

The Federal Government has been warned that any move in the Federal Budget to increase the superannuation contributions tax on high income earners will simply represent a reincarnation of the superannuation surcharge.

The Small Independent Superannuation Funds Association (SISFA) has made the accusation at the same time as questioning the intentions of the Government in imposing a wealth tax on high income earners who make superannuation contributions.

Commenting on the move, SISFA chair Michael Lorimer said that if the move proceeded in the Budget, it would "clearly (be) a disaster and really is just the surcharge reincarnated".

"Although it is proposed to only apply to high income earners, the reality is that the costs of administering such a system will be borne by all super fund members, regardless of their balance or income," he said.

Lorimer claimed the damage done to the perception of superannuation by such a measure would be much higher than the tax actually collected. 

"Will it only be a matter of time before people earning less than $300,000 a year will also have a higher contributions tax?" he asked.

"This Government and future governments have to get over seeing superannuation and voluntary contributions as some cash cow that can be raided when other revenue channels are reduced. People have to believe that super is worthwhile and have confidence in the system," Lorimer said.

"And, on top of new rules, we are still awaiting a final announcement on the structure for over-50s' contributions from 1 July 2012," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

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

1 month 2 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month 2 weeks ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month 3 weeks ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

6 days 1 hour ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

3 weeks 4 days ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

3 weeks 3 days ago

TOP PERFORMING FUNDS