Increase contributions cap to $35,000: SPAA
The Self Managed Super Fund Professionals' Association (SPAA) has called for the Government to increase the standard concessional contribution cap by $10,000 to $35,000 for those over 50.
The Australian Taxation Office has collected $300 million in excess contributions tax from individuals since 2007, making the change more urgent, according to the SPAA chief executive Andrea Slattery, who was speaking at the Tax Forum this week.
"The severity and manner in which this tax is imposed is one of the most significant issues confronting consumer confidence in the superannuation sector and the level of voluntary superannuation savings, particularly when a significant majority [of the cases are] low to middle income earners," said Slattery.
The costs of the changes would be offset by the Government's proposal to keep the cap at $50,000 for people earning less than $500,000, according to Slattery.
"In any case, the Government should give consideration to a modest increase in revenue cost acknowledging the strong appeal of the longer-term administrative/communications efficiency gains that this approach would produce," she added.
Other issues raised by the SPAA at the Tax Forum were the removal of disincentives for those aged 65 or older who wanted to continue contributing to their superannuation, and the increase of the superannuation guarantee to 12 per cent.
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