News & Updates

Government tinkers with superannuation at the cost of customers.
Following last night's budget announcement, the Financial Planning Association (FPA) has announced concern that superannuation is being used again as a political tool for government at the cost of consumers.The budget announced that the start date of the higher concessional contributions cap measure will be deferred by two years, from 1 July 2012 to 1 July 2014. The two year deferral means that Australians will only be able to make concessional contributions of up to $25,000 per year. The original proposal would have allowed individuals aged 50 and over, with an account balance less than $500,000, to contribute up to $50,000 in concessional contributions. Dante DeGori, General Manager of Policy and Government Relations said that “The deferral of the higher concessional contributions cap is a huge disadvantage to Australians over 50 who are trying to save for retirement. The FPA feels that this announcement is counter-productive to the Governments retirement policy objectives and counter-productive to the growth of the superannuation system and current savings culture in Australia. We do not support the $500,000 account balance eligibility threshold for concessional contributions and believe it should be scrapped altogether.” The government also announced that from 1 July 2012, the tax for individuals with income greater than $300,000 will double from 15 per cent to 30 per cent on their superannuation contributions excluding the Medicare levy.