SMSF lobby group the SMSF Owners’ Alliance has said “hate to say it Malcolm, but we told you so”.
The SMSFOA said that voters have delivered a “rebuke” to the Coalition.
“Ever since the May budget introduced a new tax and retrospective limits on superannuation savings, SMSF Owners and many thousands of individuals have been warning the Government it is going the wrong way on superannuation.”
“This was expressed in our regular briefs to Coalition members before and during the campaign, in letters from members of SMSF Owners to Coalition members, senators and candidates and in thousands of social media comments. While the superannuation changes were not a headline issue in most of the media during the campaign, we know that Coalition members were under a lot of pressure in their electorates.”
“Many Liberal voters felt betrayed that a party supporting individual effort and self-reliance should impose a new tax on retirement savings. This sentiment came not just from those in retirement who would be affected directly by the tax now, but also from those in middle-age who aspire to be financially independent in retirement.”
The SMSFOA says it was “extraordinary” for the Coalition to argue for lower taxes for companies and new taxes on superannuation.
“It was baffling that the Government attempted to argue that a new cap on contributions back-dated by 9 years was not retrospective. It clearly was and already the Government has had to modify its policy to take account of unintended consequences.”
The Treasurer Scott Morrison wrote a letter to the SMSFOA setting out some ‘transitional arrangements’ for SMSFs.
The SMSFOA says Malcolm Turnbull, if he remains as PM, should “order a re-think on superannuation policy and engage in genuine consultation with the superannuation sector, including SMSFs, on a better way forward”.
“If changes to superannuation are considered necessary they should be made in a way that does not reduce the value of savings that were made under the rules that existed before the May budget or reduce the opportunity for people to make non-concessional contributions.”
Current superannuation policy is unclear, with minority Coalition or Labor government still a possibility, along with a complicated senate.