SPAA laments Federal Budget elements
The Self-Managed Super Fund Professionals' Association (SPAA) has acknowledged it had been lobbying for the two-year delay in the commencement data of the concessional contributions caps announced in the Federal Budget.
However, it claims the measure - announced in last week's Federal Budget - fell short of what it was actually arguing for.
It said the Federal Budget measure meant the concessional contributions cap for all individuals - irrespective of their age or superannuation account balance - would be $25,000 for the two-year period commencing from 1 July 2012.
However, SPAA said that while it had been advocating for a two-year delay in the commencement date of the measure, it had also argued for a flat $35,000 concessional contributions cap to apply to all individuals over 50 in the interim.
"In SPAA's view, a two-year deferral is required to give the Australian Taxation Office sufficient time to establish the database of member balances required to properly assess entitlements to the higher cap," it said.
The SPAA analysis said the decision not to raise the concessional contributions cap beyond $25,000 from 1 July for individuals over 50 was disappointing and would make it difficult for individuals approaching retirement - or individuals with broken working patterns - to adequately save for retirement.
"It is worth remembering that the concessional cap for individuals over 50 was initially $100,000 when the caps first commenced on 1 July 2007," the SPAA analysis said.
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