The SMSF Association has urged the Federal Government to deliver a period of stability for superannuation in the upcoming 2017/18 Budget.
Association Head of Policy Jordan George said: “Superannuation funds need a period of stability, not only to ensure that they are able to implement any changes required to meet the new superannuation laws, but to foster confidence in the system.”
“The Government’s moves to enshrine the objectives of superannuation in law are a welcome step in this direction; however, the objectives must be fit-for-purpose to deliver the stability the system so badly needs. It is also essential to remove superannuation policy from the regular budgetary cycle.”
The Association says that the superannuation system underwent “significant upheaval” with the passage of the Fair and Sustainable Superannuation Act late in 2017. Mr George said many fund members and advisors are working through the actions required to comply with the new laws applying from 1 July 2017.
“In addition to the need to revisit strategies and undertake actions to meet the new rules, many SMSFs will be faced with increased reporting compliance obligations under the new transfer balance cap rules after 1 July,” he said.
“Consequently, the Association believes it is essential that the Government commits to a period of stability for superannuation free of significant changes, especially concerning tax settings.”
“This would allow superannuation funds and their members a period to ensure that they have the correct strategies in place to comply with the new rules and maximise their opportunities to build retirement savings.”
He said this period of stability would also help restore “much-needed” confidence in the super system.
“After a period of significant change, it is important that stability follows so that fund members can have confidence that their retirement savings will not be at the whim of Budget policy or more tinkering with the superannuation laws.”
The 2017/18 Federal Budget will be handed down on the night of Tuesday the 9th of May.