Economy

Andrew will never support superannuation reform that is retrospective. Any such changes however should at least be accompanied by grandfathering provisions for individuals approaching retirement, including for changes to caps on contributions.

Andrew favours reform that is focussed on ensuring that everyone has sufficient income in retirement. It shouldn’t matter how and when contributions are made up until a reasonable cap is reached. So he does not support the current government’s proposal for a $500,000 lifetime cap on non-concessional contributions.

Andrew supports Ken Henry’s recommendation in the Australia’s Future Tax System report to abolish the current tax arrangements on superannuation contributions and replace them with a flat-rate tax offset of 15 per cent to be deducted from the individual’s marginal tax rate. This would remove the distinction between concessional and non-concessional contributions and make tax treatment of superannuation fairer and more progressive while providing the government with higher revenue.

Andrew also support the Low Income Superannuation Tax Offset that exempts those earning up to $37,000 from paying tax on their super and he welcomes its re-introduction in the 2016-2017 Budget.

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