SPAA wants super contribution cap above $35,000
The SMSF Professionals’ Association of Australia (SPAA) is calling on the Coalition Government to increase the concessional contribution cap above the current $35,000 limit.
Under the current system people aged 60 and over will be able to make up to $35,000 of concessional contributions to their superannuation in 2013-14, and from 1 July next year people aged 50 and over will also be able to contribute $35,000.
The decision was announced in April this year and came into effect in May.
SPAA CEO Andrea Slattery welcomed the recent increase from $25,000 to $35,000 but said the cap should be higher to allow people to make greater concessional contributions.
“This is especially relevant to women and those with broken work patterns, as a higher concessional cap will give them the chance to contribute more to superannuation at a time when they can afford it most,” she said.
Slattery believes the tax concessions for contributions are a vital part of the Australian superannuation system policy that leaves Australians with a reasonable amount for a sustainable retirement.
“The concessionally taxed contributions to superannuation give people the incentive they need to forgo current spending in favour of saving for retirement,” she said.
SPAA has been advocating for a higher contribution cap than the $25,000 limit since it was slashed to that level in 2009, particularly for those over 50. It made submissions in 2011 that supported the introduction of a $35,000 cap.
“There is now an opportunity for the new Coalition Government to take on the challenge of increasing the cap and providing an opportunity for more Australians to establish a self-sufficient and dignified retirement for themselves,” Slattery said.
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