The Financial Services Council (FSC) welcomes the Treasurer's announcements today that the Government has revised its policy proposal in relation to taxing high superannuation balances and that it will also boost the low-income superannuation tax offset (LISTO).
CEO of the FSC Blake Briggs said: "The FSC recognises this is a significant shift in Government policy that responds to broad industry concerns, and welcomes the new direction outlined by the Treasurer."
The superannuation and wealth industry will take time to consider the technical detail in the proposed policy and will consult in good faith with the Government on how the policy can be implemented.
"The FSC will work collaboratively with the Government to ensure the tax is designed in a way that can enjoy broad industry support, in particular focusing on ensuring the policy design around the taxation of realised gains is fair and workable.
"The commitment to index the new tax thresholds and only apply the tax to realised gains that occur in the future is welcome," he said.
The FSC also supports changes to the Low Income Superannuation Tax Offset (LISTO) which will mean lower income Australians will have more comfortable standards of living in retirement.
"Superannuation requires Australians to put away 12 per cent of the income for their retirement and all consumers that participate in the system should enjoy concessional tax benefits in return for accessing their savings over a long period of time," Mr Briggs concluded.
