AUSTRALIA - The Association of Superannuation Funds Australia (ASFA) has called for political collaboration on the removal of the super surcharge, which was rejected in the Senate this week.
The Australian Labor Party sided with minor parties to block the government’s Bill, which would have removed the tax for high and middle income earners.
“This tax has been inequitable and inefficient and its removal should be supported by all the political parties,” said Philippa Smith, CEO of ASFA.
“The surcharge has falsely been described as a tax that applied only to ‘the rich’ when in fact many middle income earners were caught by the surcharge, including police and workers with shift allowances, or who had employer-provided accommodation.”
ASFA said it expects that legislation will be reintroduced following the change in composition of the Senate after July 1. But if the legislation was passed now, it would provide greater certainty for both funds and fund members, it added.
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The lifetime allowance should be scrapped and replaced with a lower annual allowance, last week's Pensions Buzz respondents said.
Action for Children Pension Fund has outsourced its pensions administration to Trafalgar House.