ASFA calls for end to super surcharge
The Association of Superannuation Funds of Australia (ASFA) has called for an end to the additional super contributions tax imposed on middle to high-income earners.
While the Senate has so far rejected the bill to remove the tax, ASFA says the surcharge is “inequitable and inefficient”, and has called for political parties to support its removal.
ASFA CEO Philippa Smith says the surcharge has falsely been described as a tax that applies only to “the rich”.
“In fact many middle-income earners were caught by the surcharge, including police and workers with shift allowances, or those who had employer-provided accommodation,” she said.
ASFA says the removal of the surcharge would mean simpler systems and disclosure materials, which would result in members being more confident about making salary sacrifices and contributions potentially subject to the surcharge.