ISA critical of low income super changes
Industry Super Australia (ISA) has condemned the new Government's plan to axe the Low Income Super Contribution (LISC) as part of its repeal of the Mineral Resources Rent Tax (MRRT).
Last week, Treasurer Joe Hockey, Finance Minister Mathias Cormann and Industry Minister Ian McFarlane unveiled the framework to remove the MRRT, while re-committing to the increase of the superannuation guarantee from nine to 12 per cent by 2021.
But ISA, formerly Industry Super Network, said cutting the LISC rebate could rip an extra $30,000 from the retirement packages of low income earners and create further inequality.
"The government is seeking to balance short-term budget pressures against the need to build more adequate levels of retirement savings through SG increases," it said in a statement.
ISA was also critical of the delay in pushing the superannuation guarantee from nine to 12 per cent, which it said would create a shortfall of around $40 billion in super savings over the next seven years.
"To ensure long-term sustainability of our retirement incomes system and economic growth, it is vital there is no further delay in increasing the SG," it said.
Unlike ISA, the Financial Services Council (FSC) was generous in its appraisal of the new Government's plans.
"The Government has a clear mandate to repeal the MRRT whilst retaining the key policy of increasing super contributions to 12 per cent by 2021", said FSC chief executive officer John Brogden said last week.
The Government said rescinding the MRRT put more than $13 billion back into the budget.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.