Labor’s superannuation reform package, announced yesterday, includes lowering the annual non-concessional contributions cap to $75,000 and lowering the high-income superannuation contribution threshold to $200,000.
It also opposes the introduction of catch-up concessional contributions, as proposed by the Turnbull government.
“The Turnbull government’s superannuation changes have been a stuff-up from the start,” said shadow treasurer Chris Bowen.
“After attacking Labor’s responsible and fair superannuation reform proposals, the government announced a rushed and flawed package in the 2016 budget,” he said.
“Malcolm Turnbull’s retrospective changes undermined confidence in the retirement system and sparked another civil war inside the Liberal Party,” he added.
“The current superannuation system delivers half of all tax concessions to the top 20 per cent of income earners. That isn’t fair or fiscally sustainable.”
Kelly O’Dwyer, minister for revenue and financial services, believes this “backflip” will, in effect, have an impact on women, carers and small businesses.
“Labor’s superannuation tax grab will thwart people who are in and out of the workforce from catching up on their super contributions,” Ms O’Dwyer said.
“Our changes will help women, who may have taken time out of the workforce to raise children or to care for a family member. They will also help people with irregular income patterns, such as farmers, as well as small business people and their employees, by allowing them to claim a tax deduction for personal super contributions.
“By contrast, Labor’s changes will prevent people in these cohorts from having the opportunity to build up their super balances.”
- Is superannuation still a good option for your clients?
By Chris Morcom
- Practical advice for improving your cyber security
By Rob McAdam, Pure Hacking
- Blockchain: why it’s time for accountants to get on board
By Ben Scull, Thomson Reuters