subscribe to our newsletter
Liberals best bet to fix super taxes, says fund manager

Liberals best bet to fix super taxes, says fund manager

Tim Stewart
16 October 2015

Only a conservative government will have the political capital to change any inequities in superannuation tax concessions, according to Blue Sky Alternative Investments.

Speaking to SMSF Adviser's sister title, InvestorDaily, Blue Sky chief investment officer Alex McNab said that for an Australian government to change the generous tax concessions for wealthy Australians would require a 'Nixon to China' moment.

Just as former US president Richard Nixon was the only US leader who could visit Mao Zedong, only the Coalition can change the tax settings for superannuation concessions, Mr McNab said.

"Because if it’s a Labor government doing it, then naturally it will be viewed as class warfare – and there would be some great headlines around that!" he said.

Referring to superannuation changes more generally, Mr McNab said it would make sense for the government to legislate a number of "meaningful changes to super" at the same time.

"In some ways it’s the tinkering that puts people off," he said. "A little change here, a little change there ... you never quite know where you’re going to land.

"Whereas if you rip the Band-Aid off quickly, I think people won’t like it but they’ll accept it and they can make plans around the new regime."

Mr McNab spoke favourably of Malcolm Turnbull's recent cabinet reshuffle, noting that the immediate test for new Treasurer Scott Morrison and Assistant Treasurer Kelly O'Dwyer will be to respond to the Financial System Inquiry (FSI) final report.

The Abbott government was due to respond to the report the day after Malcolm Turnbull took power.

"[The FSI response] would be right up the top of Kelly O'Dwyer's agenda and it would be reasonably high on Scott Morrison's agenda," Mr McNab said.

"They absolutely have the right to review it and make sure they’re personally comfortable with it. You’d just love to see it not drag on too long."

Read more:

SMSFs at risk of 'lawyer feeding fest'

New shadow minister tipped to bolster SMSF sector 

 

Liberals best bet to fix super taxes, says fund manager
smsfadviser logo
join the discussion

What do you plan to do in response to the new adviser education standards?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super