2017/18 Pre-Budget submission: Superannuation & SMSFs

This submission makes several recommendations, including continuing with the Tax White Paper process, repealing the so-called ‘work test’ for superannuation contributions and indexing the LISTO to increases in the Super Guarantee rate.

Continue Tax White Paper process

Many submission ahead of the 2016/17 Budget were limited due to an assumption that the Government was proceeding with the announced Tax White Paper process. Submissions to the Budget process closed on the 5th of February 2016. On the same day the Prime Minister Malcolm Turnbull said: “I think given we’re so close to the Budget, the Budget will be, for all practical purposes, the White Paper”. Read more...

Submission: Senate inquiry into Superannuation (Objective) Bill

This is a submission to the Senate inquiry into the Bill to set a legislated objective for superannuation.

Thank you for the opportunity to make a submission in relation to the Superannuation (Objective) Bill 2016.

This submission will deal with three issues: the need for broad support for the objective before it is set in legislation, long-term reporting on meeting the objective for superannuation and that both the primary and subsidiary objectives for superannuation should be set in legislation.

A legislated objective for superannuation could be a useful tool setting the direction of policy to achieve retirement goals, or it could be an empty phrase – either ignored or changed to suit the whims of the day. Based on the development of the objective so far it appears the latter is much more likely. Read more...

Submission: Fair and Sustainable Superannuation Bill 2016

Submission to Inquiry into Superannuation (Excess Transfer Balance Tax) Bill 2016 [Provisions] and Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 [Provisions]

Thank you for the opportunity to make a submission to the inquiry into these Bills. This submission will deal with:

  • 1.0 Insufficient time for consultation
  • 2.0 The overly complicated nature of the changes
  • 3.0 Indexing LISTO to increases in Super Guarantee rate
  • 4.0 Welcome extension of time for Transfer Balance Cap transitional relief

1.0 Insufficient time for consultation

I am concerned that insufficient time has been allowed for public consultation on some 500 pages of legislation and explanatory materials. By my count, the time allowed for public consultation on the draft superannuation Bill tranches is as follows (including weekends): Read more...

Submission: superannuation reform package – tranche three

Thank you for the opportunity to make a submission in relation to the third tranche of superannuation reform package draft legislation. This submission will deal with two main issues: the insufficient time allowed for consultation and the overly complicated nature of the changes.

Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016

Insufficient time for consultation

More time should be allowed for consultation on the changes to the non-concessional contributions cap due to the recent announcement of the new measures, the substantial reduction in the contribution cap and the complicated nature of the changes – both separately and when combined with changes in the rest of the legislation. Read more...

Submission to Working Holiday Maker Reform package inquiry

Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2016

I strongly object to increasing the tax on backpackers claiming a Departing Australia Superannuation Payment (DASP) to, in many cases, 95%. The Government should not seek to tax superannuation at such an excessive rate as an alternative to taxing other income, seemingly in the hopes that backpackers will not notice or care. Taxes should, where possible, be imposed in a clear and efficient manner.

The Explanatory Materials (EM) to the Bills say:

Increasing the rate of tax on departing Australia superannuation payments for working holiday makers is consistent with the objective of superannuation which is to support Australians in their retirement. Read more...

Submission: superannuation reform package – tranche two

Thank you for the opportunity to make a submission in relation to the second tranche of draft superannuation reform package Bills and regulations. This submission will deal with several issues: the insufficient time allowed for consultation on these complicated changes, how the transitional rules for the Transfer Balance Cap should be extended for SMSFs and the need for reporting of the Transfer Balance Cap for individuals given proportional indexation.

Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 Read more...

Superannuation reform package submission: LISTO and objective of super

Thank you for the opportunity to make a submission in relation to the draft superannuation reform package Bills and regulations released on the 7th of September. This submission will deal with two issues: indexing the LISTO so it keeps pace with increases to the Superannuation Guarantee rate and longer-term reporting on the objective of superannuation.

Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016

Indexing Low Income Superannuation Tax Offset to increases in Superannuation Guarantee rate Read more...

Don’t change superannuation in 2015/16 budget, says CPA

Federal Budget 2015/16, superannuation, SMSFCPA Australia has called on the Government to not make any changes to superannuation in the upcoming 2015/16 Federal Budget.

“There should be no short-term or piecemeal superannuation changes introduced in the 2015-16 Budget to ensure the White Paper process is allowed to run its course,” says the CPA pre-budget submission.

Financial advice should be fully tax deductible, says IPA

financial advice, tax deductible, IPA, budget 2015/16The Institute of Public Accountants (IPA) has called for financial advice to be fully tax deductible, up to a capped limit, to improve retirement planning.

“The Intergenerational Report concludes that there will only be 2.7 working Australians to support every Australian over the age of 65 by 2055. Competent and affordable financial advice will be an essential ingredient in paving the way to sustainable retirement incomes and to help alleviate over-reliance on government funded pensions,” said IPA CEO Andrew Conway. Read more...