Chartered Accountants Australia and New Zealand (CA ANZ) welcomes today’s bipartisan commitment to no new superannuation taxes.
“Superannuation is a bedrock that provides security for our ageing population and future economy, which is why it’s so important that it has certainty and continuity,” says CA ANZ Superannuation Leader Tony Negline.
“Today’s announcement is a good step towards providing that certainty, and we look forward to more details being released on taxation and economic policies as the election campaign continues.
“While we welcome today’s announcement, more details are needed when it comes to proposed changes to superannuation.
“The ALP needs to share further detail on some of their super policies such as changes to after tax contributions and the re-introduction of a work test for deductions for personal contributions, which could be seen as tax increases on super.
“Also their proposed abolition of franking credit refunds which will impact many self-managed super funds.”
“While CA ANZ supports plans to increase the superannuation guarantee from 9.5 per cent to 12 per cent by 2025, we need to work on ensuring this does not impact on take-home pay, especially for low to middle income earners.
“Related to this, we question how small business owners can be assisted with reaching the new super thresholds, and when we will move towards the eventual target of 15 per cent.”
Negline said that CA ANZ, representing over 120,000 chartered accountants, has further questions around both party’s taxation policies, and the implementation details in the future.
“We know the Coalition has said they are going to flatten the taxation brackets, but both parties’ tax policies contain bracket creep. The Coalition’s flatter taxes will not apply for many years,” he said.
“We have more questions than answers, and less than five weeks to get the information to the Australian electorate so that we can make an informed decision at the election.”