The superannuation sector is calling for policy adjustments following the recent budget announcement, highlighting perceived gaps in the government’s approach. While the budget maintained stability in super settings, industry voices suggest there are areas that require attention.
The federal budget had limited emphasis on superannuation, with minimal references to the sector. Notably, superannuation tax receipts played a significant role in a substantial upward revision in tax revenue. Additionally, the budget included measures such as support for payday super reform and allocated funds to ensure timely superannuation payments by businesses through the Australian Taxation Office.
Despite not being explicitly outlined in the budget, the government reaffirmed its commitment to a $3 million super tax, reflecting optimism in revenue forecasts. Projections indicate a substantial contribution of $25.6 billion from the superannuation sector to the federal budget in 2025-26, primarily driven by increased tax revenues.
In response to the budget, the Association of Superannuation Funds of Australia (ASFA) appreciated the additional funding for the tax authority, emphasizing the importance of ensuring retirees receive their entitled superannuation. ASFA also acknowledged the budget’s efforts in providing cost-of-living relief for retirees and maintaining stability in superannuation settings.
However, ASFA’s CEO, Mary Delahunty, highlighted the ongoing need for policy adjustments, particularly advocating for changes to the Low Income Superannuation Tax Offset (LISTO). Similarly, the Financial Services Council (FSC) welcomed the funding for the Tax Integrity Program but stressed the significance of prioritizing economic growth and regulatory simplification in the upcoming parliamentary term.
The Super Members Council (SMC) expressed disappointment in the budget’s lack of comprehensive superannuation reforms, emphasizing the need to address outdated regulations that impact retirement savings. They called for universal access to superannuation from the onset of one’s career to secure dignified retirements for all Australians.
HESTA identified areas where the budget fell short, including the absence of super on the carer payment, no adjustments to LISTO, and unindexed work bonus payment thresholds. CEO Debby Blakey underscored the importance of addressing these gaps to support members, particularly women and low-wage earners, in achieving better retirement outcomes.
In conclusion, while the budget provided some stability for the superannuation sector, industry stakeholders stress the necessity of ongoing policy refinements to ensure a fair and robust retirement system for all Australians.
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