SISFA urges higher contribution caps
A recent submission made by the Small Independent Superannuation Funds Association (SISFA) to the Assistant Treasurer, Bill Shorten, has highlighted a number of areas of concern in matters relating to retirement policy.
Focusing on adequacy and contribution regulations in particular, the submission stated that while SISFA supported the policy direction of increasing compulsory superannuation to 12 per cent, it was strongly of the view that more was required.
"SISFA does not advocate an 'open slather' or 'no limits' approach," the submission stated. "We hold a strong view that greater flexibility and imagination in accumulating wealth in super should be encouraged and embodied in legislation."
To that effect, the suggestions made by SISFA included higher contribution caps (both concessional and non-concessional) and a more flexible approach to those caps in the form of a 'rolling period cap' or similar.
On the topic of contribution regulations, SISFA proposed that contributions be more dynamic and flexible, using the possibility of a life-time cap, a rolling period cap or a single universal limit for life-time contributions as possible examples.
"Solutions in this regard could be a life-time cap on concessional/non-concessional contributions to allow the savings of people to increase through higher contributions at times when their cash flow allows," it said. "Alternatively, move to a single universal limit for life-time contributions to super, irrespective of age.
"This is consistent with the theme of a later acceleration model for the making of higher contributions later in life."
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