Super changes detrimental for the catastrophically injured
Criticism of the Government’s super tax changes has extended to the law community, with the Australian Lawyers Alliance (ALA) raising concerns that a tax on super assets supporting income streams of $100,000-plus will impact the catastrophically disabled and their carers.
The seriously disabled nearly always hold their compensation money in allocated pensions, according to ALA national president Tony Kerin.
The Government must review the impact that its new laws will place on those with serious injuries and take measures to exempt these compensation payments from the superannuation tax if it is to proceed, the ALA said.
“Every dollar is needed to meet their future care and other costs. This new tax will mean they will likely have to go without some of their care and support or that their money will run out before their life expectancy,” Kerin said.
The new laws, which are designed to tax Australia’s most wealthy to pay for the incoming National Disability Insurance scheme, would ironically tax Australia’s most disabled people, he said.
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