Accountants call for lift in super caps
The Institute of Public Accountants (IPA) has renewed its call for the Government to use next month's Federal Budget to increase superannuation concessional contribution caps.
The IPA renewed its call yesterday, stating it believed the annual concessional contribution cap for those aged between 50 and 60 years should be raised to $50,000, and to $75,000 a year for those aged over 60 years.
Currently concessional contributions are capped at $25,000 (or $35,000 for certain members).
Discussing the reasons for such a move, IPA chief executive Andre Conway said that increasing concessional contribution caps for those aged over 50 would allow them to make more adequate preparations for retirement in their final years of employment.
He pointed to Australian Bureau of Statistics showing that the current median superannuation balances of Australians in the 55-to-64 year age bracket for males is just $90,000, and $60,000 for females.
"Whilst in the short term, increasing the concessional contribution caps may be a cost to the government, it will help to increase Australians' superannuation balances and therefore reduce the number of people reliant on government benefits in the future," Conway said.
He said increasing the concessional contribution caps would also help women who take time out of the workforce to raise families.
"With women on average having lower superannuation balances than males of the same age (other than those in the youngest age bracket), it becomes even more critical that we provide them with the opportunity and means to increase their superannuation balances as they prepare for retirement," Conway said.
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