“It’s disconcerting to see politicians playing politics with super in an election year,” Pitcher Partners Sydney partner Charlie Viola said.
Mr Viola said that certainty and clarity were needed to prevent a loss of confidence in the benefits of the superannuation system.
“Australians need certainty about superannuation, and the continued rumours around raising the tax rate on superannuation contributions for higher income earners erode confidence in the system. The fact of the matter is that superannuation provides the most effective tax structure for people who don’t need to draw on their assets immediately, and that’s a structure we want to protect to encourage savings behaviour and reduce reliance on the Age Pension,” he said.
Super tax concessions cost 30% less
Mr Viola also noted Treasury estimates that suggest superannuation tax concessions cost 30 per cent less than originally thought, and warned that cutting tax concessions could encourage adverse revenue effects.
“These proposals are social policy as much as they are a revenue policy.
“Cutting tax concessions for super will not make much difference to the Budget bottom line if you see people starting to shift their savings behaviour away from superannuation. The government will lose that source of revenue. The government also needs to be aware of the revenue effects if reliance on the Age Pension is increased.”
He said Pitcher Partners are also calling for greater transparency around the government’s entire tax package.
“Australian businesses and taxpayers shouldn’t have to wait until the election to know the government’s proposed taxation reforms. What the government can’t afford to do is delay the tax white paper any further – individuals and businesses need certainty about the government’s taxation agenda,” Mr Viola said.
For more information please contact:
Charlie Viola, Partner, Pitcher Partners Sydney, 02 8236 7798 or 0414 809 635
Sabine Wolff, Media and Communications Advisor, Pitcher Partners, 0419 529 577
Karin Krueger, KDK Media (02) 9979 3718 or 0419 991 267