The Senate Economics Legislation Committee has recommended the Minerals Resource Rent Tax Repeal (MRRT) and Other Measures Bill 2013 to be passed, including the repeal of the low income superannuation contribution (LISC).
In reaching their decision, the committee argued it would be fiscally irresponsible to continue policies that were largely unfunded.
“The committee acknowledges that some of the MRRT-related expenditure measures that are repealed or revised by the bill are worthy in nature,” the committee said in its report to government late yesterday.
“However, these measures have been linked to revenue that has not materialised, and the committee believes it would be fiscally irresponsible to leave unfunded measures in place in the budget,” the committee said.
But the committee did recommend for the government to review the viability of the LISC policy once a budget surplus could be achieved.
“The committee recommends that the government revisit certain measures in the bill, in particular incentives in superannuation for low income earners and taxation issues affecting small business, once the budget returns to strong surplus,” the committee said in its recommendations.
The committee also recommended that the government considered revisiting the question of incentives in superannuation for low income earners as part of its tax review.
Written by Wouter Klijn.