Following reports that Treasury is considering placing a lifetime cap on voluntary super contributions advocated by various think tanks and industry groups, the Greens have indicated that while they will consider all options for superannuation reform, PBO analysis indicates it may not generate enough savings to rein in the rising cost of superannuation tax concessions.
Greens Treasury spokesperson Adam Bandt MP said:
"It is good that the Government is reportedly considering superannuation reform, but a lifetime cap on voluntary super contributions is unlikely to generate the kind of savings we need to address the growing cost of unfair super tax breaks.”
“By placing a lifetime cap of $500,000 on voluntary non-concessional super contributions, PBO analysis suggests government would raise only $165 million over four years, while the cost of super tax concessions is set to be about $170 billion over the same period.”
"Worryingly, PBO analysis suggests a higher lifetime cap might in fact cost the Budget more than we're currently paying in super tax breaks."
“For a long time now the Greens have pushed for reform to end superannuation being used as a vehicle for tax minimisation, which it was never intended to be.”
“We need to do much more to end the unfairness in our super system to make sure it properly looks after people in their retirement.”
“To raise the revenue we need to properly fund our schools, hospitals and services, the government will need far more serious reform.”
“The Greens have a proposal to raise over $10b by applying progressive tax rates to superannuation contributions, which would see low income earners and the Federal budget better off.”
Media contact: Adam Pulford, 0429 109 054