AUSTRALIA - UniSuper, the superannuation fund for workers in the higher education and research sector, have claimed some of the proposed changes to superannuation regulation could adversely affect its members and recommended amendments in an effort to prevent this.
The A$19.3bn fund published its concerns regarding the Commonwealth Treasury’s "Plan to Simplify and Streamline Superannuation", released as part of the budget for 2006.
One of the fund’s main gripes was the $50,000 cap for concessional tax treatment on deductible contributions.
"UniSuper members’ capacity to save for their retirement would be adversely
affected by the cap," the fund said. This was because until 30 June 2006, 130 of its members exceeded the cap as a result of the standard contribution structure.
In light of this, UniSuper CEO Ann Byrne recommended such cases be exempt from the application of the top marginal tax rate.
Among other things, the changes also proposed superannuation funds not accept undeducted contributions in excess of $150,000. UniSuper, however, claimed this should be allowed, as long as the member can prove the money was a result of a genuine retirement savings process.
Overall, the fund said it supported the general aim laid out by the treasury.
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