Speaking to SMSF Adviser, Quantum Financial Principal Tim Mackay said the government should stop continually making changes to superannuation.
“Politicians of either flavour should just give up their addiction to incessant tinkering with superannuation,” Mr Mackay said.
“Many of my clients still remember John Howard promising SG would go to 15 per cent.”
Similarly, the SMSF Professionals’ Association of Australia (SPAA) said this latest decision works to undermine the public’s confidence in the superannuation system.
“By linking the abolition of the mining tax with the decision to freeze the SG for seven years, the government is again demonstrating that dipping into the superannuation ‘piggy bank’ is always an option when difficult fiscal decisions have to be made,” said SPAA’s chief executive Andrea Slattery.
“SPAA was critical of the Budget announcement in May to delay the SG levy until 2018, and now Australians will suffer a further blow to their rightful ambitions to be self-sufficient in retirement.”
Ms Slattery also said the SG delay highlights the need for superannuation to be removed from the short-term policy cycle.
“In its submission to the Financial System Inquiry, SPAA recommended that major superannuation policy decisions be removed from the annual budget cycle and instead be subject to a five-year review as part of the intergenerational report. In light of this decision, the acceptance of that recommendation is more imperative than ever,” she said.
Like beauty, tinkering is in the eye of the be(er)holder. Thus, when the SG rate was hiked from 9 to 12%, employers thought it was tinkering, while financial planners saw the rivers of fees and quietly forgave the pollies. When benefits for the 60+ became taxfree, and RBLs were abolished, the oldies did not begrudge the tinkering. Self-interest can explain the asymmetry.
Me and mine will also sell up in Australia, go live somewhere cheaper, less stupid. Self defeating policies of stupid politicos is leading to government having to pay pensions which is what I thought they were trying to avoid.
Can’t wait to retire, I’m going to take all my funds out of super and sell up and go and live in Asia. Much cheaper and better health system especially Thailand, food is 80% less etc. and I can get away from greedy Australian politicians.