The Government should pause proposed changes to superannuation in light of the market reactions to the Brexit vote, says the SMSF Owners’ Alliance.
“The economic shock waves from Brexit mean the Government must pause and re-think its superannuation tax plans if it is elected next Saturday,” said SMSFOA.
“The retirement savings of Australians are now vulnerable to the buffeting they will receive as the global economy adjusts to Brexit. Superannuation fund investment strategies and expected returns on fund assets are now much more uncertain. The share market will be more volatile, interest rates may stay lower for longer and investment values will be affected by variations in exchange rates and trade flows.”
“In these circumstances, new taxes and new limits on superannuation savings will diminish the capacity of superannuation funds to deliver dependable and adequate returns to their members in line with their investment strategy and anticipated retirement income.”
The SMSFOA says it would be “unfair and unwise” for the changes to superannuation announced in the 2016 Budget to proceed in the current circumstances.
“They should not be imposing new structural changes on superannuation when the investment climate is so uncertain.”
“If elected, the Coalition should immediately put its superannuation tax plans on hold until the consequences of Brexit become clearer.”
The SMSFOA is calling on the Government to review the figures underlying the policies and grandfather the changes.
“The numbers on which the Government justifies its superannuation changes do not stack up and should be independently audited.”
“As well as hitting the pause button on its superannuation tax policy, the Government should engage in genuine consultation with superannuation investor groups. So far it has fallen short of proper consultation.”