Parliament should press pause on superannuation legislation: SMSFOA

The SMSF Owners’ Alliance is calling on the Parliament to “pause” and give further consideration to proposed superannuation legislation.

“The national Parliament is about to consider sweeping changes to superannuation that will affect many Australians,” said the SMSFOA.

The consultation period for all three tranches of draft superannuation legislation from the 2016 Budget has now closed. The SMSFOA expects that this legislation may be introduced to the Parliament as early as next week.

“The Government is aiming to have the legislation passed by the end of this year.”

However the SMSFOA is urging that the Bills be referred to Parliamentary Committees for review.

“The Government’s consultation on the draft legislation released so far has been hasty with just a few working days allowed for comments on three tranches of complex new law.”

“They are the most significant changes to superannuation in a decade – since the reforms Peter Costello made in 2006.”

“The changes take many pages of legislation to explain. There is a risk of unintended consequences if the legislation is rushed.”

The SMSFOA says the Senate needs to consider if it is prepared to pass tax laws with “retrospective effective” when there has been reluctance to do so in the past.

The organisation also says the Government should consider extending the start date, for many of the measures, of 1 July 2017.

“We appreciate there will be a revenue cost if the start date is pushed back, however it is important to make sure the new law will be workable and that Australians are given reasonable time to understand what the law means to them and to make well-informed decisions about the disposition of their retirement savings.”

“In any case, changes to superannuation should not be about raising revenue. They should be to make superannuation more efficient and effective, enabling many more Australians to achieve a financially secure retirement.”

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