“It’s disconcerting to see politicians playing politics with super in an election year,” Mr Viola said.
“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,” he added.
Noting that superannuation provides “the most effective tax structure for people who don’t need to draw on their assets immediately”, Mr Viola warned that cutting superannuation tax concessions could encourage adverse revenue effects.
“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.”
Mr Viola added that Pitcher Partners has called for greater transparency regarding the government’s tax package in its entirety.
“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,” he concluded.
