SISFA questions wealth tax: “surcharge reincarnated”

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The Small Independent Superannuation Funds Association (SISFA) has questioned the intentions of the Government in imposing a wealth tax on high income earners making superannuation contributions. 

“If this goes ahead, it’s clearly a disaster and really is just the surcharge reincarnated. Although it is proposed to only apply to high income earners, the reality is that the costs of administering such a system will be borne by all super fund members, regardless of their balance or income.  The damage done to the perception of superannuation by such a measure is much higher than the tax actually collected. 

“Will it only be a matter of time before people earning less than $300,000 pa will also have a higher contributions tax? 

“This Government and future governments have to get over seeing superannuation and voluntary contributions as some cash cow that can be raided when other revenue channels are reduced. People have to believe that super is worthwhile and have confidence in the system. 

“And, on top of new rules, we are still awaiting a final announcement on the structure for over-50’s contributions from 1 July 2012,” said Michael Lorimer, Chair of SISFA.

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