About one third of senior Australians are against the Australian Government’s current plans to increase the tax rate on superannuation balances above $3 million (US$1.97 million), according to the results of a new survey.
The Older Australians’ views on the superannuation system survey found 25.3% of those surveyed did not want any changes to the way superannuation is taxed, while another 8.5% were in favour of the plans but only if they were changed.
However, 47.6% of those questioned supported the controversial proposal, which proposes breaking the long-held convention of never taxing unrealised capital gains.
The remaining 18.6% did not have an opinion about the planned bill, which is expected to be passed by both houses of parliament once introduced following Labor’s landslide victory in the 3 May election.
National Seniors Australia (NSA) and Super Members Council (SMC) were handing down the findings of a survey of more than 3000 respondents aged 50 and older.
A total of 61.7% of them had super balances of more than $500,000, but it was unclear what proportion of them would be affected by the change on the basis that they had more than $3 million in their accounts.
Among the other results, SMC, the peak body for profit-to-member funds, said older Australians supported efforts to make the system work better for retirees, with 78% wanting the ability to make direct super contributions into a retirement account.
Retirees who want to put money into super are forced to maintain a separate accumulation account and pay a second set of fees, with an administrative burden to roll their funds together.
“Being able to make contributions to a retirement phase account is a bit of a no brainer,” SMC Head of Government Relations & Research James Gunn told the webinar.
SMC said that although a significant majority of older Australians thought the super system was strong and sustainable, fewer felt it was equitable, particularly for women, people in poorer health, and Australians with less formal education.
A large majority (88%) were concerned about the financial well-being of Australians who accessed their super early.
