Poor must have super freedom
The superannuation industry is bemoaning the government's decision not to proceed with the refund of the 15 per cent contributions tax levied on those earning less than $37,000 a year, saying it is penalising low-income taxpayers.
At the same time, funds are taking full advantage of the abolition in July last year of the low-balance protection measures to substantially increase the fees charged on balances of less than $1000.
This has resulted in a return to the bad old days when small account balances are quickly eaten up in fees, especially when unwanted insurance cover is also directly charged to the account.
The previous government justified abolishing the low-balance protection rules on the basis that the MySuper changes would reduce costs for members and make super more cost-effective and equitable across all of a fund's members.
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