Senate Committee supports abolition of LISC
Industry Super Australia (ISA) has lamented a decision by a Senate Economics Committee to support abolishing the Low Income Superannuation Contribution (LISC) as part of the repeal of the Mineral Resources Rent Tax (MRRT).
Commenting on the committee decision, ISA chief executive, David Whiteley described the decision as "disappointing" and suggested that it was still possible a way could be found to retain the low income scheme.
"Where there's a will there's a way," he said.
"The superannuation and financial planning industries were unanimous in their view to the Senate Economics Committee that the LISC should be retained."
Whiteley said that submissions made during the committee hearings had suggested that the LISC or equivalent tax benefits for low-income earners could be retained without impacting on the Government's Budget objectives.
"The proposed abolition of the LISC impacts up to 2 million low paid Industry Super Fund members by increasing the tax they pay on their super contributions - so that they are the only Australians who are denied a tax benefit for contributing to super," he said.
"ISA will continue to explore alternative options to find a means to fund the retention of this important measure and would urge the Government to work with the industry to achieve this outcome."
AUTHOR
Staff Writer
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
