The Institute of Public Accountants (IPA) has called on the Government to repeal legislation that caps personal concessional contributions at 10 per cent.
The ’10 per cent rule’ currently limits concessional contributions from non-employment income sources if a taxpayer earns more than 10 per cent of their total income from employment services.
It serves to discriminate against other sources of contributions, according to the IPA, and sends the wrong message about retirement savings.
“The 10 per cent rule is unnecessary and inequitable for a number of Australians,” IPA CEO Andrew Conway said.
“Access to the concessional super caps should not discriminate based on individual circumstances.
“A taxpayer earning income from other sources who also works part-time to supplement their income is limited to the superannuation contributions made by their employer.”
