Long-term pain if super contributions reduced
Reducing the superannuation contribution cap is short-sighted and will give longer-term pain, according to the Institute of Public Accountants (IPA).
IPA chief executive, Andrew Conway, said while no one could ignore Australia's budget deficit, or the savings that would be delivered by restricting pre-tax contributions, it would only be a short-term gain.
Whilst increasing the concessional contribution caps may be a cost in the short-term, 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 noted the increase of concessional caps would also help the gender gap in super.
"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," he said.
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