The SMSF Professionals’ Association of Australia (SPAA) has today [Mon 4.11.2013] called on the Coalition Government to increase the concessional contributions cap to enable Australians to achieve self-sufficiency in retirement. Currently, in 2013-14, a $35,000 concessional contributions cap applies for those who were 59 years or over on 30 June 2013 (instead of the general concessional cap of $25,000). The $35,000 concessional cap has also been legislated to apply from 2014-15 for those who were 49 years or over on 30 June for the previous income year.
SPAA CEO Andrea Slattery welcomed the recent increase in the concessional cap for older Australians, but SPAA still believes that the cap needs to be higher. Mrs Slattery said there is now an opportunity for the new Coalition Government to take on the challenge of increasing the cap and providing an opportunity for more Australians to establish a self-sufficient retirement. This is especially relevant to women and those with broken work patterns as a higher concessional cap will give them the chance to contribute more to superannuation at a time when they can afford it most, Mrs Slattery said.
Source: SPAA media release, 4 November 2013.
[LTN 213, 4/11/13]