The Federal Government and Opposition have given only qualified commitments to review taxation on superannuation in the wake of theAssociation of Superannuation Funds Australiacalling for reductions as part of the launch of a new national advertising campaign.
Armed with survey data revealing that superannuation is a priority issue for 31 to 50 year olds, ASFA’s chief executive officer, Philippa Smith has reiterated the association’s long-standing calls for cuts to the superannuation taxation regime, particularly removal of the 15 per cent contributions tax.
However, when asked to comment on the ASFA survey findings and the organisation’s call for tax cuts, neither the Government nor the Opposition has been prepared to commit to specific changes to the taxation regime.
Smith says she is not surprised by the reluctance of the major parties to make a commitment in circumstances where the superannuation taxation regime has represented such a strong revenue stream.
She says she is hopeful that the data contained in the ASFA survey and the advertising campaign which kicks off this weekend will help persuade the major parties of the need for change.
“The ageing of our population and the pressures this brings means that it is critical to encourage disciplined long-term savings for individual wellbeing, the strength of our economy and the stability of future generations,” Smith says.
“Apart from the family home, super is the major, and often only, savings for ordinary Australians,” she says.
“Because of super the situation for low and middle income people is improving but we need to build super savings if we are to meet the individual and national challenges of the future. Both Government and individuals need to act now – this mustn’t be allowed to slip from the agenda,” Smith says.
The ASFA advertising campaign, valued at around $700,000, will kick off on free to air and pay television from Sunday, 25 January.
