Superannuation Roundtable Meets For the First Time
The Gillard Government's plans for smarter, simpler, fairer superannuation took another step forward today with the inaugural meeting of the Superannuation Roundtable in Sydney.
This Roundtable delivers on a commitment made at the 2011 Tax Forum for the Government to work with industry, community groups and other stakeholders about how best to implement the Government's ambitious reform agenda for superannuation. The Roundtable was developed with a particular focus on the operation of superannuation post-retirement and will look broadly at ways to improve the confidence of consumers in retirement.
There was agreement around the table that a priority going forward is to get better information around the current distribution of tax concessions. Participants also agreed it would further discuss ways to provide a better deal for women in regards to superannuation.
"As a Labor Government, we fundamentally believe that superannuation should be taxed concessionally because it's compulsory," Minister Shorten said today.
"We also believe that the superannuation system will provide a generation of Australians with a secure and comfortable retirement through private savings without having to rely on the welfare system."
The Roundtable also had productive discussions about the administration of concessional caps for over 50s. From July 1 2012, Australians over 50 with superannuation balances of less than $500,000 will benefit from a $50,000 concessional cap.
The work of the Roundtable will build on the significant superannuation reforms announced by the Government as part of its Stronger, Fairer, Simpler package of tax reforms. These include:
- progressively increasing the superannuation guarantee rate from 9 per cent to 12 per cent from 1 July 2013 to 1 July 2019;
- introducing a new low income superannuation contribution worth up to $500 a year from 1July 2012, which will effectively refund the 15 per cent contributions tax for individuals with income up to $37,000;
- introducing a $50,000 concessional contributions cap for individuals aged 50 and over who have less than $500,000 in superannuation from 1 July 2012, which is $25,000 more generous than the general cap of $25,000; and
- abolishing the 70 year age limit on the superannuation guarantee from 1 July 2013.
Minister Shorten thanked Roundtable participants and said he looked forward to constructive discussions.
23 February 2012