“The Government’s estimate of only 16,000 people being affected by this measure is unrealistic, as the estimate is based on a 5 per cent annual return, when annual returns of double or more are typical,” said CPSA policy coordinator Paul Versteege.
CSPA said it welcomed the increase of concessional contributions caps to $35,000 for over-60s and excess contributions tax reform as the “current arrangement of taxing excess contributions at the top marginal rate was unnecessarily punitive”.
However, it said that “overall, CPSA would have preferred a more thorough and principled approach to super reform, which has now taken the form of a combination of increased tax revenue and improved social equity outcomes”.
CPSA supported raising super earnings above $100,000 as an equitable measure that would limit the “excessive tax break” given by the Howard Government to the over-60s.
“The bad news is that tax-free super for the over-60s is a thing of the past, but the good news is that it won’t affect ordinary Australians,” Versteege said.
“Extending normal pension deeming rules to superannuation removes an obvious inequity,” he added.
CPSA has a combined membership, including its affiliates, of more than 29,000 members across NSW.
By: Bela Moore