The SMSF Professionals’ Association of Australia (SPAA) has broadly welcomed the Budget changes around superannuation but has expressed concern over the complexity of some measures and disappointment over a cap to self-education expenses.
SPAA head of technical and professional standards Graeme Colley said SPAA was disappointed that the government was proceeding with a decision to cap self-education expense deductions at $2,000 per year from 1 July 2014.
This will increase the cost for SMSF professionals to maintain their current knowledge and competencies, he said.
“As a market leader in SMSF accreditation, SPAA sees this change as a real blow to SMSF professionals that want to stay up-to-date and competent.”
Mr Colley also expressed concern over the complexity of administering a 15 per cent tax on super earnings over $100,000.
“We have already outlined our concerns about this proposal to the government, and will expect to work closely with government on the details of this measure to minimise the costs and complexities for SMSF trustees,” he said.
“The fact that the Budget papers provide $43 million to administer this measure for an estimated 16,000 affected taxpayers shows its complexity.”
However, Mr Colley welcomed the remainder of the superannuation changes and the lack of surprises.
“SMSF trustees should now feel more confident that the superannuation system is off the government’s radar and remains Australia’s primary retirement savings vehicle,” he said.
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