ACOSS is urging federal parliamentarians to pass the superannuation legislation introduced today to tax high-wealth superannuation accounts, as it is an important and measured next step toward fairer taxation and a more sustainable revenue base.
“Superannuation is supposed to be a tool to allow people to have a decent retirement but it is used by people with high-wealth accounts to avoid tax while accumulating more wealth,” said ACOSS CEO Cassandra Goldie.
‘’Almost 40 per cent (38%) of the $28 billion in annual tax breaks for super fund investment income goes to the highest 10 per cent of individuals ranked by income. That is $10 billion a year that is not available for the services and supports we need from government. This is unfair and unsustainable.
“This bill improves the taxation of very high-wealth super accounts and improves fairness and integrity in Australia’s superannuation system.
“The government is working constructively to address the hugely generous tax concessions that overwhelmingly benefit a minority of people who are amongst the wealthiest in the country.
“It also provides a welcome boost to the superannuation savings of people with low incomes - most of them women - through an important increase in the Low Income Superannuation Tax Offset.”
ACOSS says indexing the higher tax rate threshold at $3 million is unnecessary as it is much higher than what is needed for a decent retirement.
“The legislation is a sensible, modest next step toward a fairer tax system that better reflects community expectations,” Dr Goldie said.
“ACOSS urges all members of parliament to get behind this reform and work to make the superannuation system fairer and more sustainable.”
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Lauren 0422 581 506
