The Association of Superannuation Funds of Australia (ASFA) has supported changes announced by the Government ahead of the Federal Budget which will enable older Australians boost their superannuation savings which includes the expansion of the ‘downsizer scheme’ to those aged 60.
According to ASFA, the move, which would see the removal of the work test for contributions would increase flexibility for older citizens, would additionally help increase the supply of family homes to the property market.
ASFA also expressed hopes for the budget to address the ‘unacceptable gap’ in retirement savings between women and men by removing the $450 per month threshold where super was not paid by paying superannuation guarantee (SG) on paid parental leave.
“Younger Australians have faced the economic brunt of COVID-19 – there are one million Australians who have effectively cleaned out their superannuation account due to early release,” ASFA’s deputy chief executive officer, Glen McCrea, said.
“It is crucial that the low-income superannuation tax offset (LISTO) rises to reflect tax rate changes and the system goes to 12% so more Australians can have dignity in retirement, particularly younger Australians given the dramatic ageing of the Australian population over the next three decades."