The new government intend to undo some of Labor’s plans to impose higher taxes on earnings from superannuation pension funds.
Later today, Treasurer Joe Hockey and Assistant Treasurer Arthur Sinodinos will outline plans to scrap seven proposed changes to the tax system, according to The AFR.
This includes dropping the proposed tax on superannuation pension earnings above $100,000.
The changes follow a review of almost 100 tax changes announced by the previous government and not legislated.
The government will proceed with just 18 of 92 unlegislated and unresolved tax and superannuation changes dating back to 2001, The AFR reports.
Other outstanding tax changes include proposed changes to the taxation of trusts and to managed investment trusts.
While the Treasury is expected to announce the new changes today, it has already set the wheels in motion to have a two-year pause in the increase in the rate of the Superannuation Guarantee (SG) and repeal the low income superannuation contribution under the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013.
But the Association of Superannuation Funds of Australia (ASFA) disagrees these changes should go ahead.
Its recent submission to the government makes it clear ASFA supports the current scheduled increases in the rate of the SG and does not support the proposed two year pause, as it will impact on retirement quality of a large proportion of Australians.
The association is particularly concerned the removal of low income superannuation contribution will have a significant impact of the quality of retirement for many low income Australians, particularly women.
“Increasing the rate of compulsory contributions as originally proposed is, we believe, also important to maintain the confidence of Australians in the certainty of future superannuation arrangements," said ASFA CEO Pauline Vamos.
“In this context, survey evidence indicates that both superannuation and the prospective adequacy of retirement incomes have become ‘top of mind’ topics for most Australians.”
ASFA pointed to a recent survey of around 1000 adult Australians which indicated 78% of the adult population support the increase in the rate of SG. Just over 50% of respondents opposed, to some degree, any delay in increasing the rate of the SG.