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."
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all