2011 Federal Budget: What about super’s 4 forgotten issues?

1. Increase Concessional Contributions Caps:

The $25,000 concessional cap is too low and fails to recognise that the majority of the population cannot make large, regular, additional contributions to a super fund. Most Australians do not live linear lives. Typically, the majority of Australians make lumpy, catch-up contributions after they have paid off their house, educated children or returned to work (if caring for children full-time).

I want to know the name of the so-called 'expert' advising the Federal Government, who told the decision-makers that only 2% of the population would be affected by halving concessional caps from July 2009! Who are you kidding? Evidently, the Government has misled and betrayed the Australian public.

Arguably, the insensitivity of the Government halving the concessional caps while the world and investment markets were trying to recover from the Global Financial Crisis (GFC), proves we have decision-makers who think Australians are idiots and simply don't care!

Mr Shorten, I advise you not to make the same mistake as your predecessors when making decisions about superannuation. The concessional contributions cap is not only utilised by 'rich' people.

Here's a list of some of the categories of Australians who have been hit hard by the halving of the concessional contributions caps (and the eventual cut to $25,000 for many over-50s - a quarter of the original $100,000 cap!):

a) Women and others who take breaks from work.

b) Self-employed and contractors

c) Home-owners paying off mortgages, who must delay their super saving until the mortgage is repaid.

d) Australians bringing up children.

e) Senior Australians hit hard by the GFC trying to rebuild retirement savings.

f) Individuals who divorce and must now rebuild wealth.