Bipartisan solution needed to retain super tax breaks for 3.6 million Australians

Release date: 3/12/2013

The decision by the Senate Economics Committee to support abolishing the Low Income Superannuation Contribution (LISC) as part of the repeal of the mining tax is disappointing, industry superannuation funds said today.

Industry Super Australia, 3 December 2013

Industry Super Australia Chief Executive David Whiteley expressed concern at the outcome and reiterated his call on the federal parliament to find a solution that involved retaining the LISC.

“Where there’s a will there’s a way.”

“The superannuation and financial planning industries were unanimous in their view to the Senate Economics Committee that the LISC should be retained.”

During the hearings the committee heard that the LISC or equivalent tax benefits for low-income earners could be retained without impacting on the Government’s Budget objectives, Mr. Whiteley said.

“The proposed abolition of the LISC impacts up to 2 million low paid Industry SuperFund members by increasing the tax they pay on their super contributions – so that they are the only Australians who are denied a tax benefit for contributing to super.

“ISA will continue to explore alternative options to find a means to fund the retention of this important measure and would urge the Government to work with the industry to achieve this outcome,” Mr. Whiteley said.

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