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Compliance & Regulation

Super consultation process to commence

Revenue and Financial Services Minister Kelly O’Dwyer has revealed the consultation process regarding exposure draft legislation for the proposed changes to the superannuation framework will begin very soon.

“Consistent with usual practice, we will listen carefully to advice on the design of the legislation,” O’Dwyer told the Financial Services Council Leaders Summit 2016 in Melbourne.

O’Dwyer emphasised super was a key part of the system to support Australians in their retirement years, but needed to be sustainable.

“As the population ages and fiscal pressures increase, we need to be sure the tax concessions that apply to superannuation are fiscally sustainable and appropriately targeted and the system has integrity,” she said.

She added flexibility had to be a component of the system as well to accommodate the variety of working arrangements of Australians.

To that end, she highlighted some of the positive proposed changes to the system contained in the budget.

“We recognise that people have different work patterns. People will often have multiple jobs and several careers across their lifetime,” she noted.

“They might also take breaks from work to look after children or to care for an elderly relative for example.

“Under the changes, more employees and a wider range of self-employed people will be able to claim a tax deduction for personal superannuation contributions,” she said.

“For the first time, people with balances under $500,000 will be able to roll over unused concessional caps for the previous five years to allow those with interrupted work arrangements, such as parents, to make catch-up concessional superannuation contributions.”

She said the government remained committed to encourage transparency, competition and efficiency in the superannuation system.

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