Imperative new government move quickly on superannuation: SMSFA

Election 2016, Government, SMSF Association, superannuation policy, objective of superannuationIt is “imperative” that a new government moves quickly to set long-term goals for superannuation, according to the SMSF Association.

“It has been the Association’s long-term policy that the objective and underlying principles of superannuation should be enshrined in legislation, and what has happened over the course of this election campaign has simply reinforced our position,” said SMSF Association CEO Andrea Slattery.

“It is quite clear that the election highlighted the fact that many in the electorate were unnerved by the changes to superannuation proposed by both major parties and are seeking certainty for their retirement planning.” Read more...

Election leaves superannuation policy uncertain

election 2016, superannuation policy, budget 2016, coalition, liberal party, labor party, parliamentAn unclear election result has compounded already uncertain superannuation policy.

The counting of votes continues, though it is quite likely there will be either a Coalition or Labor minority government. This leaves superannuation policy even more uncertain than it became during the election campaign.

Both the Coalition and the Labor parties went in to the election with policies on superannuation which had been subject to criticism, particularly some of the policies announced in the 2016 Budget. Read more...

Politicians risk electoral peril by changing super rules

Politicians risk electoral peril by constantly changing superannuation rules, Olivia Long, CEO of SMSF administrators Xpress Super and SuperGuardian, election 2016The clear message from the election is that politicians risk electoral peril by constantly changing superannuation policy, says Olivia Long, CEO of SMSF administrators Xpress Super and SuperGuardian.

“Although it was the Coalition Government that felt a backlash from voters in the wake of the Budget measures around superannuation that caused so much public angst, the reality is both the major parties were culpable as Labor included these savings in its fiscal estimates.”

“What the electorate has rightly discerned is that superannuation is increasingly being seen by all the political parties as a cash cow that can be milked for fiscal reasons.” Read more...

SMSF lobby group tells Turnbull “we told you so”

election 2016, Budget 2016, superannuation changes, parliament, PM Malcolm TurnbullSMSF 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.” Read more...

Turnbull promises no further changes to superannuation in next term

Prime Minster, PM, Malcolm Turnbull, no further changes to superannuation in next term of governmentMalcolm Turnbull has said the Coalition will not make any changes to superannuation beyond what was announced in the Budget, should the they win the election.

The Prime Minster told the National Press Club: “We will not be making any further changes to superannuation in the next term of Government if we are re-elected.  Mr Shorten cannot match that claim.”

Former PM Tony Abbott promised no changes to superannuation in this term of Government on several occasions.

“Our superannuation goes to the heart of economic security,” said Mr Turnbull in his speech. Read more...

‘Transitional arrangements’ to apply to $500k lifetime non-concessional cap

“Transitional arrangements” will apply to SMSFs for the $500,000 lifetime non-concessional contributions cap, the Treasurer Scott Morrison has said in a letter to the SMSF Owners’ Alliance.

The 2016 Budget included a $500,000 lifetime non-concessional contributions cap. This raised a number of concerns, including from the SMSF sector that it could mean some funds not being able to meet existing obligations.

The Treasurer has now said there will be ‘transitional arrangements’ for SMSFs. In a letter to the SMSF Owners’ Alliance (SMSFOA) he said: “The Government has been asked to provide guidance on how this measure will apply to a very small number of individuals using sophisticated financing techniques for the purchase of assets within a self-managed superannuation fund.” Read more...

Labor adopts Coalition timetable for Super Guarantee rate increases

Labor, ALP, superannuation policy, increases to superannuation guarantee rate, SG rate, 9.5%, 12%Labor has seemingly dropped support for faster increases to the Superannuation Guarantee rate, in a week which also saw the adoption of savings from super changes in the 2016 Budget but not the policies.

The ALP has frequently criticised the Government for freezing the SG rate at 9.5% and slowing the increase to 12%. However Shadow Treasurer Chris Bowen has now indicated his party won’t have a policy of faster increases in the SG rate.

In a press conference the Shadow Treasurer was asked: “Another area of your super policy that isn’t clear on your list of positive policies. The Government froze the super guarantee at 9.5 per cent until I think it was 2018. After that, I presume it increases. At the time you were very vocal against that decision. I assume now you accept that, because we’ve had no policy?” Read more...

Pause Budget super changes due to Brexit, says SMSFOA

Federal Budget 2016/17, Budget 2016, superannuation changes, Brexit, SMSF Owners' Alliance (SMSFOA)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.” Read more...

Labor books billions in savings from Budget super measures

Labor has booked over $3 billion in net savings from changes to superannuation included in the 2016 Budget, despite voicing opposition to some of the measures.

The 2016 Budget included $5.99 billion in revenue raised from the changes to superannuation over the forward estimates, along with $2.79 billion of new spending measures, for a net $3.2 in new taxes raised from superannuation.

budget-superannuation-measures-revenue-raised

Source: Budget Paper No. 2 2016-17

Labor appears to have adopted these savings, despite not supporting all the policies. Their costings include the PEFO Underlying Cash Balance, before adjusting for the ‘Impact of Labor Measures’. The PEFO figure is an update to the 2016 Budget – it includes the $3.2 net new revenue from superannuation. But Labor hasn’t adopted the policies, only committing to a review. Read more...

Labor would review 2016 Budget superannuation changes

Labor party, ALP, superannuation changes, election 2016, budget 2016The ALP would, should they win the upcoming election, conduct an inquiry into the changes to superannuation announced by the Coalition in the 2016 Budget.

“A Shorten Labor Government will review the Turnbull Government’s proposed changes to superannuation contained in this year’s federal Budget,” said a statement by Shadow Minister for Financial Services and Superannuation, Jim Chalmers.

“Labor will not make the same mistake the Turnbull Government has made in coming to a final view in advance of properly analysing each measure and how it relates to the others.” Read more...