The Association of Superannuation Funds of Australia (ASFA) says the government should pass without delay legislation it introduced yesterday, which gives effect to tax changes to super in order to provide certainty and confidence in the system.
ASFA said in a statement that, while the extensive detail contained in the bill and explanatory memorandum needs to be carefully analysed, it broadly supports the thrust of the government’s tax package from its announcement because it makes the super system more sustainable and fair.
ASFA chief executive Martin Fahy said the proposed measures to allow individuals with modest balances to make use of previously unused concessional contribution caps and allowing up to $100,000 a year non-concessional contributions were important to provide equity for people with broken work patterns.
“This is particularly significant for women who need to make more substantial catch-up contributions once they have the capacity to do so,” Dr Fahy said.
“Increased flexibility for the self-employed to make contributions is also a much needed improvements.
“The growth of the gig-economy, where more people are employed on contracts, means superannuation settings need to change to reflect modern working patterns.
“With this legislation we now have sustainable and fair parameters for tax on superannuation.”
ASFA also said it is calling for a period of stability in the rules around superannuation.
“This legislation is an inflection point in superannuation policy that should allow people to move on and increase their confidence in the system,” Dr Fahy said.
“ASFA agrees with the government that the fundamental objective of the system should be enshrined in law, however, ASFA also believes the goal of superannuation should be aspirational and should go further, to provide adequacy and comfort in retirement.”
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