The Financial Services Council has cautioned the government against tinkering with superannuation, stating that superannuation changes are “not credible tax reform”.
Speaking in Sydney on Friday, FSC chief executive Sally Loane said superannuation must not be "raided" by the government to fill holes in the federal budget or to "fund pet projects".
"The national retirement savings policy – otherwise known as superannuation, has little to do with the tax system," Ms Loane said.
"Everyone knows we have a crook tax system. It is confusing, inefficient, costs Australian investment and jobs, and it reduces the incentives for many to work.
"You can tinker with super, but the truth is you will still have a broken tax system," she said.
Superannuation changes are "not credible tax reform", she added.
"Let’s be very clear: the gates have long been closed to stop people stuffing millions into super," Ms Loane said.
"Super was never designed as an intergenerational wealth transfer vehicle and should not be used as such."
Ms Loane also laid out the FSC's six-point plan for superannuation:
- give every Australian saver cast-iron confidence in the system;
- define its purpose and make it law;
- increase the superannuation guarantee rate to 12 per cent by 2022;
- encourage people to save voluntarily beyond the 12 per cent guarantee;
- provide tax concessions which give all Australians an incentive to save;
- increase the preservation age in line with increases in the age pension and life expectancy.
"If we follow this plan, new analysis by Rice Warner Actuaries demonstrates that the super system will achieve its objective – the present value of our age pension liabilities will be reduced by 60 per cent for middle Australia by 2050," Ms Loane said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
27 Feb 2017Newer SMSF investment products facing APL constraintsBy Miranda Brownlee
27 Feb 2017Government slammed over actuarial certificate plansBy Miranda Brownlee
27 Feb 2017High-level departures at AMP’s SMSF licensing armBy Aleks Vickovich
24 Feb 2017Government urged to rectify ‘legislative shortcoming’ with CGT reliefBy Miranda Brownlee
24 Feb 2017Actuaries Institute highlights further legacy pension issuesBy Miranda Brownlee
24 Feb 2017Fintech company launches online client management toolBy Staff Reporter
- view all
Newer SMSF investment products facing APL constraints
Newer investment products entering the market may provide SMSF practitioners associated with smaller independent dealer groups an opportunit...read more
Government slammed over actuarial certificate plans
Several industry bodies have raised concerns regarding the government’s proposals to implement an exemption to obtain an actuary certifica...read more
Government urged to rectify ‘legislative shortcoming’ with CGT relief
The Tax Institute has called for an extension of the deadline for applying the CGT relief in respect to the segregated approach, amid conce...read more
- view all