Tackle super through tax reform
The Federal Government should drop certain superannuation policy changes proposed in the 2016 Budget and tackle structural budget problems through holistic tax reform, a professional account body opined.
The Institute of Public Accountants joined others in urging the Federal Government to drop certain superannuation policy changes, in particular the lifetime cap of $500,000 on non-concessional contributions backdated to 1 July, 2007, and the $1.6 million cap on pension-phase balances.
IPA chief executive officer, Andrew Conway, also urged the government in taking super out of the budgetary cycle and cease the tinkering, adding the Government should only make long-term changes once it enshrines the purpose of super.
"Justifying these changes on the basis it only impacts a small proportion of the population does not justify backdating their impact," Conway said.
"The impact on people's long-term financial savings to fund 30 years of retirement defeats the purpose of what superannuation was meant to address.
"Successive governments have encouraged citizens to provide for their own retirement but retrospective policy changes have made many people feel anxious."
Conway also suggested considering strategies outside of super to fund retirement as part of a wider review of retirement income policy.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
