Abbott reiterates pre-election super promise
Prime Minister Tony Abbott has reiterated that his government has no plans to increase taxes on superannuation or make any major changes to it during this term.
This follows calls for super tax concessions for the wealthy to be targeted in the federal Budget, set to be released in May.
BDO Superannuation partner Paul Rafton said the delay by the government in providing a strong position had been sending “panic waves through the market”.
“Since Christmas there has been misinformation and conflicting comments about whether there would or wouldn’t be changes to superannuation and that caused alarm for many people,” said Mr Rafton.
He added, however, that the prime minister's comments last Thursday have helped “allay people’s fears”.
The months of uncertainty demonstrated the importance of superannuation to the future of Australia, Mr Rafton said, noting that while there is always increased interest in superannuation queries at this time of year, leading up to the Budget, the volume of concern this year has been unprecedented.
“Superannuation is an investment that’s made over decades and it needs to be treated accordingly,” he said.
“While uncertainty about changes to superannuation is disconcerting, it doesn’t warrant drastic actions, at least not without proper consideration of an individual’s complete financial circumstances.”
The best way to handle periods of uncertainty is to continue to follow the current rules and regulations surrounding superannuation, he added.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.