Superannuation claims based on old data
New research published by the Association of Superannuation Funds of Australia (ASFA) has pointed out that many of those who claim the superannuation taxation system unduly favours high income earners are basing their facts on old, outdated figures.
The research, dealing with equity in superannuation, points to a statistic used in the Henry Tax Review and by the Australian Council of Social Service (ACOSS) claiming that five per cent of individuals account for 37 per cent of concessional contributions.
However, it said the figure, originating in the Federal Treasury, relates to 2005-06 "when superannuation policy settings were significantly different to now".
"For instance, in 2005-06 a maximum deductible contribution limit of $100,587 applied for each employee aged 50 and over and for the self-employed aged 50 and over. For those aged 35 to 49 the figure was $40,560 a year," the ASFA research said.
It said that by 2009-10 a new set of concessional contribution caps was in force (after a number of variants along the way).
"As a result, more recent figures show lower contributions by the top few per cent of income earners," the research said.
The ASFA research said more data compiled by the Treasury had confirmed that the bulk of the contributions tax concession was delivered to those on less than the top marginal tax rate, with nearly half of the total concession delivered to those with incomes between $37,000 and $80,000 a year.
AUTHOR
Staff Writer
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
