This measure is one of a number of reforms, including increasing the superannuation guarantee rate to 12 per cent and a Government contribution for low income earners, which will directly impact the cost of conducting business in Australia While it will deliver improvements in retirement savings and a variation to the distribution of superannuation taxation concessions, someone has to pay and unfortunately it will be struggling businesses.
A discussion paper on this topic was released today by the Assistant Treasurer and Minister for Financial Services and Superannuation.The discussion paper presents a number of options for key parameters of the measure, including the process for determining eligibility for the higher cap and methodology for determining total superannuation account balances.
The Government has invited interested parties to view the consultation paper and provide comments. Copies of the consultation paper can be viewed on the Treasury website www.treasury.gov.au. The closing date for submissions is 25 March 2011.
Submissions may be lodged electronically or by post to:
Manager, Contributions & Accumulation Unit
Personal and Retirement Income Division
The Treasury, Langton Crescent
PARKES ACT 2600