It was sensible not to tinker with superannuation tax concessions in the Federal budget as it should be scrutinised within the wider context of the tax review, a peak industry body for the super sector opined.
The Australian Institute of Superannuation Trustees (AIST) said the tax review comes at an opportune time to as the retirement system needs to be sustainable in the long-term.
Chief executive, Tom Garcia, urged both sides of government to back the scrutiny of super through the tax review and to consider its recommendations cautiously.
“The last thing we need are ad-hoc or one-off budget changes to superannuation taxes but there is plenty of evidence showing that the super tax concessions are poorly targeted and growing acceptance across the industry and other stakeholders that some changes are needed,” Garcia said.
AIST research showed Age Pension asset test changes would widen the retirement equity gap.
“This highlights the urgency to assess total government assistance for retirement incomes received by all Australians, including the very well-off who currently get the lion’s share,” Garcia said.
AIST’s submission would call for a less complex tax regime, he added.
“We will be assessing and testing a range of tax policies for their impact with regards to fairness, sustainability, gender bias, adequacy and how easily any changes can be implemented,” he said.
