Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Super co-contribution should be extended, says ABA

taxation/government/chief-executive/

13 January 2006
| By Larissa Tuohy |

The Government should extend access to super co-contributions for low to middle income earners in order to encourage Australians under the age of 40 to save for their retirement, according to the Australian Bankers’ Association (ABA).

Speaking at the public inquiry held at the House of Representatives, the ABA’s chief executive David Bell said “a retirement savings gap still exists between the aspirations of Generation X and Y for their standard and living and what the current system will deliver”.

He added: “At least 3 per cent of additional voluntary contributions are necessary for Generation X and Y to achieve adequate retirement income levels. However, there is no point in simply telling people they must save more without simplifying some of the super law and providing incentives.”

Other measures suggested by the ABA included removing the work test for superannuation co-contributions to permit access for the self-employed.

The differences in taxation between employed and self-employed workers should also be scrapped.

The ABA said that reasonable benefit limit (RBL) adjustments were needed to encourage income streams, and that rules which exclude non-superannuation monies from retirement income products should be removed.

The ABA’s superannuation incentive measures have been formally submitted to the Government as part of the Inquiry into improving the superannuation savings of people under 40 by the House of Representatives Standing Committee on Economics, Finance and Public Administration.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

2 days 19 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

4 weeks 1 day ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

5 days 13 hours ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND