ASFA urges further tax concessions

The Association of Superannuation Funds of Australia (ASFA) has used its submission to the Federal Government’s Henry Review of Taxation to state that it still wants the superannuation guarantee lifted to 15 per cent and that it believes this should be achieved by 2015.

The ASFA submission, details of which have been released by the organisation, also calls for an approach that makes superannuation contributions more tax effective, including ensuring the tax advantage on their super contributions is lower than their marginal tax rate.

The submission also calls for some tweaking of the current regulatory system to encourage people to remain in the workforce beyond age 65 if they are capable of doing so.

It said in this context, the social security and taxation systems for those aged over 65 needed to be considered simultaneously.

The submission also broached the issue of increased life expectancy and longevity risk and argued individuals will need to be able to defray longevity risk by accessing, on a cost-effective basis, retirement products that provide longevity insurance or a guaranteed income for life.

The ASFA submission also urged financial advice on a fee-for-service basis should be tax deductible.