Making superannuation sustainable (members)

The Australian yesterday reported that the peak body representing the superannuation industry, the Association of Superannuation Funds of Australia (ASFA), has recommended that the government implement a lifetime cap on superannuation contributions – something lower than $2.5 million for a couple – as well as retention of the low-income superannuation contribution, in a bid to make superannuation sustainable and to prevent high wealth individuals from gleaning the lion’s share of superannuation tax concessions:

The ASFA proposals centre on a “lifetime cap” on the amount each person can put into his or her super funds, preventing the wealthiest workers from taking the lion’s share of the tax breaks.

It also urges the government to retain the low-income super contribution to top-up savings for the poorest workers by $1bn a year, a scheme due to be scrapped as part of the repeal of the mining tax.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.