Pre-election super splitting sanctioned
Superannuation contribution splitting legislation is tipped to be pushed through Federal Parliament next month.
This comes despite opposition from sectors of the financial services industry as both major political parties scramble for popularity ahead of the Federal election.
The Taxation Laws Amendment (Superannuation Contributions Splitting) Bill 2003 will allow single-income families access to the same concession taxation treatment as dual income families and give dual income households the opportunity to maximise their superannuation savings by splitting contributions between spouses.
The Association of Superannuation Funds of Australia’s (ASFA) director of policy and research Michaela Anderson says ASFA questions the practicality of the Bill and has not waivered from its submission to the Senate Economics Committee.
“The objective of the Bill is good, but people need to be warned it’s not always going to be the right option for them,” Anderson says.
In a submission to the committee, ASFA has voiced its concerns, suggesting a better result could be achieved by permitting the splitting of super benefits at the point of retirement of either spouse, rather than splitting on an annual basis.
Anderson says it is important that any costs associated with contribution splitting be borne by those directly involved rather than super fund members in general.
The concern over greater administration costs stem from the increase in work required by individual clients, according to Advance Asset Management head of technical services Matthew Esler.
“There are so many different things clients and advisers need to consider, but the key for fund managers is keep the options simple and as transparent as possible,” he says.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
