Separate super purpose from tax debate - FSC

"Federal Budget 2011" "funds management"

8 April 2016
| By Mike |
image
image
expand image

The Financial Services Council (FSC) has urged the Government to separate defining the purpose of superannuation from the current tax debate, arguing that super should not be defined by short-term considerations.

The FSC's submission to the Treasury on the objectives of superannuation also makes clear that the objective should be defined in stand-alone legislation and that the relevant minister should be required to issue a "statement of compatibility" when seeking to make legislative changes to the superannuation regime.

However, in arguing that the objective of superannuation should be separated from the current tax debate the FSC appears to have reinforced its view that the Government should not be seeking to use superannuation to fill Budget holes for other short-term purposes.

"The objective of superannuation should have a long-term focus and not be driven by short-term influences, such as the current tax debate," the submission said. "The FSC supports removing this consultation from the distorting effect of the tax debate and ensuring that any definition of the objective has bi-partisan support and is enduring."

It said the FSC also recommended the objective of superannuation is enshrined in stand-alone legislation, rather than in existing superannuation law, "as the former provides a single reference point for relevant future changes to superannuation, tax or social security policy".

It said stand-alone legislation would hard code an agreed definition and place an obligation on the relevant Minister to make a ‘statement of compatibility' with the objective of the system when legislation is introduced that impacts on the superannuation system.

"The Act would not prescribe what information is necessary for a statement of compatibility, but leave this for the Minister to determine," the submission said. "This places the onus on external stakeholders to assess the robustness of a statement of compatibility and publicly hold the Government to account for unpersuasive statements."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

7 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 12 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

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 ...

3 days 10 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 13 hours ago