Budget 2016: Clayton’s caps on super

“The much spruiked measures to curb super benefits flowing to the wealthy will not achieve a dramatic shift in the inequity of super concessions”, said Senior Adviser, Paul Versteege.

“Yes, we will have a concessional (before-tax) contribution cap of $500,000, but it’s not those with a broken work pattern who will go anywhere near that cap. Who has this kind of money? The wealthy.

“Yes, we will have a cap on how much can be put in a super pension account, but it’s a staggering $1.6 million. And if you have more, you just leave it in your accumulation (contribution) account and pay a low 15% tax on earnings. Who has this kind of money? The wealthy.

“Yes, we will have a lifetime cap on non-concessional (after tax) concessions of $500,000. It’s a significant reduction from the $180,000 annual cap a year, but again: who has that kind of money? The wealthy.

“Yes, the concessional (before tax) contribution threshold will be lowered from its current dazzling $300,000, but to what? To $250,000. And who has that kind of money? The wealthy.

“Yes, the annual concessional (before tax) contribution cap is reduced from $30,000 to $25,000, but who has $25,000 in a single year to contribute out of their pay to super? The wealthy.

“But the good old Low Income Superannuation Contribution has been left unchanged at a maximum of $500. Generously, the Government has given it a new name. It’s now called the Low Income Superannuation Offset, but $500 it is, $500 it stays. Who gets that kind of money? The poor.

“It is concerning that little has been done to address housing affordability and that Centrelink resources are facing further cuts.

“CPSA is alarmed at the introduction of a Compulsory Rent Deduction Scheme, which will see pensioners in public housing, who pay their rent unfailingly and on time, have their rent deducted from their pension. A slap in the face”, said Mr Versteege.

CANBERRA Paul Versteege 0409 814 181

SYDNEY Amelia Christie 0410 612 182