Confidence in super system hit by tax debate
The “ongoing controversy” and debate concerning the taxation future of the superannuation system is undermining the confidence of investors, according to the SMSF Association (SMSFA).
According to the SMSFA, this lack of confidence has manifested in consumers’ reluctance to commit their savings to superannuation amidst the constant threat of legislative change.
“While we are always open to a discussion about how the superannuation system works, it is important not to lose sight of the fact of what has been achieved to date to assist people to build an adequate amount to be self-sufficient in retirement,” said SMSFA chief executive Andrea Slattery.
“While the SMSFA is not saying the current shape of our superannuation system is perfect, it is important that we have an orderly process in making any changes to the system.”
SMSFA has also reiterated calls for the government to consider how to cost superannuation tax incentives.
“We believe it is almost impossible to have a sensible policy discussion when we do not have a clear picture on how the superannuation tax incentives benefit government over the long term,” Ms Slattery said.
“It’s long been the association’s opinion that how super tax incentives are measured, combined with the lack of a consistent objective, distorts the public discussion about superannuation, and that if these issues are resolved then a lot of heat would go out of this public debate.”