Call for Coalition to debate super policy in party room meeting

Budget 2016 superannuation changes, SMSF Owners' Alliance, Coalition party room meeting debateLobby group the SMSF Owners’ Alliance has called for superannuation policy to be debated in the Coalition party room meeting on Monday.

“When Coalition MPs and Senators meet next Monday in the party room they should insist on a debate about the Government’s superannuation policy, a debate they were not given the chance to have before the budget and the election,” said the SMSFOA in a statement.

There were reports that the super changes did not go to the party room prior to the Budget.

“Media reports since the election reveal that many Coalition MPs and Senators are deeply concerned about the effect of the superannuation changes on their vote with reports that traditional Liberal voters turned their backs on the party in anger and disillusion,”  said the SMSFOA.

“When the Coalition party room meets backbenchers should challenge senior ministers who seem determined to press ahead with the policy in spite of the election result and the concerns of Coalition members.”

“Even the Cabinet appears to be split with reports that Julie Bishop, Chris Pyne, Peter Dutton and Barnaby Joyce have expressed concerns about the voter backlash but have been rebuffed by Malcolm Turnbull, Scott Morrison and George Brandis.”

The SMSFOA says Government backbenchers should insist on a review of the superannuation changes proposed in the 2016 Budget before legislation is introduced.

Labor adopted a similar approach to the super changes in the last days of the election campaign – booking the savings from the changes with a review to determine the policies.

The SMSFOA is also calling on Labor to refuse to vote for legislation implementing the measures pending a independent review.

“Labor should also stick to its guns on opposing retrospective tax measures.”

“So far, there has been no genuine consultation with the superannuation sector, including the one million owners of self-managed funds. The Tax White Paper process was stopped in its tracks and the review of the objective of superannuation just went through the motions to justify decisions made in the budget.”

“At a minimum, a review of the fairness and workability of the Budget measures should be undertaken. There are many unanswered questions about how they will work in practice.”

“A better option would be to complete the White Paper process with a thorough analysis of the many thoughtful submissions made, but so far ignored, on the purpose, efficiency and adequacy of superannuation and appropriate taxation of retirement savings.”

“Superannuation is too important to the lives of most Australians to be subject to piecemeal change according to the government of the day.”

Want to be kept up-to-date with SMSF and Superannuation changes, why not subscribe to our Newsletter?

This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.

2 Replies to “Call for Coalition to debate super policy in party room meeting”

  1. “At a minimum, a review of the fairness and workability of the Budget measures should be undertaken. There are many unanswered questions about how they will work in practice.”

    Agree with above – how will the new structure work? How can + 75 years have an accumulation account – can we go back to work? add non concessional assets? How is it possible to have an exact valuation of $1.6M as at mid night 30th June 2017 if shares, bonds and other assets are to be included. To set up such an account requires transfer of assets before this date – what happens if there is a +/- change say for example in the equities market on the 30th?
    Also, have the costs of arranging all these changes been thought through? From which account do drawn downs be taken – 100% from the accumulation account – in your dreams? What a feast for accountants, lawyers and financial advisors – good luck to the auditors tracking the changes through – all to be paid for from our super savings.

    1. John has only scratched the surface.

      Just a simple (I think common) circumstance If we look past 1 July 2017 just how and when does the $1.6m work. As people approach the limit, do they start transferring money from pension to Accumulation waiting for a downturn in the market at which point they transfer it back in thus increasing the asset base?

      When I first heard about this policy, I couldn’t wrap my head around the point of having an accumulation account in retirement when that account cannot be used to draw a pension or top up the pension account. Seems to me that this policy is running contrary to the whole trust of having pension accounts.

      My, oh my, definitely time to invest in the superannuation support industry

      Bob

Leave a Reply

Your email address will not be published. Required fields are marked *