Carbon tax changes impact super
The Government’s carbon tax proposals and the consequent increase in the tax-free threshold has significant implications for low income earners making superannuation contributions, according to the Association of Superannuation Funds of Australia (ASFA).
In a submission to the Treasury filed this month, ASFA has pointed out that while the higher tax-free threshold will alleviate the need for low-income earners to file a tax return, they will still be required to do so for the purpose of accessing a superannuation contribution rebate.
It said the issue would need to be considered as part of the implementation of the Government’s carbon price announcement.
The submission suggested one possible mechanism might for the Australian Taxation Office to use information from payment summaries issued by employers to establish eligibility for the rebate along with the use of tax return information.
ASFA also suggested that special administrative arrangements be considered for workers engaged under the disability services award.
“ASFA requests that consideration be given to the design of administrative arrangements that address the plight of these people such that they also can benefit from the rebate,” it said.
The superannuation group said it strongly supported the proposal to enable superannuation funds to compensate low-income earners for the impact of contributions tax on their retirement savings.
Recommended for you
Licensees are figuring out how to navigate the annual superannuation performance test to avoid any clients being stuck in affected funds and whether they need to start running their own internal tests.
Tighter legislation is being urged around anti-hawking laws to prevent ‘dodgy advisers’ from scamming consumers to switch superannuation funds.
The Federal Court has found Active Super made misleading representations regarding its ESG credentials, specifically around excluding Russian investments at the time of the Ukraine invasion.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.