ISA welcomes channelling high-end super tax to women
Industry Super Australia has welcomed reports that the Federal Budget on 3 May will re-target high-end superannuation tax concessions to women and other lower income earners.
Deputy chief executive, Robbie Campo, said if the reported changes were true, it would update the super system to be in step with the steep increase in part-time work over the last 25 years.
She also said this would be a boost for the two million women who would face a $500 tax increase from July 2017 following the scrapping of the low income superannuation contribution (LISC).
"A landmark Senate report last week confirmed that much more needs to be done to improve women's economic security in retirement. Abolishing the LISC would be a retrograde step, further reducing the super savings of millions of Australian women," Campo said.
"If the changes are well designed, they will not only boost the super savings of those who need it most, they will ease the extent to which many need to rely so heavily on the age pension."
ISA has made submissions to the Tax White Paper process, Senate Inquiry into Women's Retirement Income Security and the pre-budget research to illustrate the system is not in sync with modern part-time work patterns, it said in a statement.
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