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Super rules must change, seniors tell govt

COTA, the peak body for Australian seniors, has joined the Council of Social Services to encourage the government to retain its super policy changes.

2 min read

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Source: AAP


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The peak body for senior Australians has called on the government to "stand firm" on its changes to superannuation policy.

The Council on the Ageing (COTA) Australia says current super policy is unfit for purpose and the system has become a wealth management tool for high-income earners.

The organisation said 87 per cent of its membership's "Election Panel" felt tax concessions in the current super policy favoured the well-off.

COTA has joined the Australian Council of Social Services (ACOSS) to write an open letter to the government, imploring it to not back down.

"The existing tax system offers too little support for people with low incomes, most of whom are women. The proposed tax offset for low-income earners ... will have a positive impact," COTA and ACOSS wrote.

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Prime Minister Malcolm Turnbull has insisted the changes, which include limiting the tax-free status of retirement accounts over $1.6 million and changing transition-to-retirement arrangements, will be implemented if the Coalition retains government on July 2.

However, he has been forced to grapple with unrest on the Coalition backbench and in the community.

ACOSS CEO Cassandra Goldie said the government had to ensure super was used as it was originally intended.

"Tax breaks for super should be about adequate retirement incomes and reducing reliance on pensions, not wealth accumulation for people already well off," Ms Goldie said.

"Every dollar lost to public revenue from badly designed tax breaks is a dollar less for health and care services for an ageing population."


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