Plea to keep super top-up payments
Industry Super Australia, the lobby group for the not-for-profit superannuation sector, has urged the federal government to retain payments to the super accounts of low-paid people.
And ISA's retail counterpart, the Financial Services Council, says it does not support the government's plans to drop the Low Income Superannuation Contribution -a payment of up to $500 a year for people earning up to $37,000.
The Coalition has said the contribution is unaffordable, but Labor says its removal will hurt 3.8 million low-paid workers, including 2.2 million women, who usually have lower super balances.
The Government on Wednesday said it would be dealing with 92 tax changes announced but not legislated during the past decade. These include dumping Labor's plans to establish a Reserve Bank-style council designed to protect retirement savings from meddling politicians, and scrapping the introduction of a 15 per cent tax on super earnings of more than $100,000.
The proposed tax on earnings was estimated by Treasury to target 16,000 people and deliver more than $300 million in revenue over four years.
But FSC chief executive John Brogden said the proposed earnings tax was "rushed, complex and, frankly, unworkable".
ISA said the government's decision to dump the earnings tax would "sit uncomfortably" with members facing higher tax on their super contributions than on their take-home pay with the removal of the LISC.
The Coalition had promised no adverse changes to the $1.6 trillion super industry in its first term.