The changes announced in the federal budget last week will pose some challenges to the efficiencies of the superannuation system, according to one of the big four firms.
Superannuation was a key, if not overwhelming, focus of last week’s federal budget. High-income earners were a particular target for the government, and various changes, including a lifetime cap on non-concessional contributions and limits on transfers to pension accounts, will be retrospective.
The government also announced the objective of superannuation, which it plans to enshrine in legislation, will be: “To provide income in retirement to substitute or supplement the age pension.”
In its post-budget report, EY was critical of the changes, despite their alignment to the government’s defined objective.
“Despite being aligned to the defined superannuation system purpose, these changes will be a further administrative burden that may challenge short-term efficiency objectives of the system, funds and service providers and associated government agencies,” EY stated.
EY had long predicted that superannuation was going to be a significant target of the federal budget this year.
EY Australia’s superannuation leader Maree Pallisco told SMSF Adviser earlier in the year that it seemed inevitable that superannuation tax concessions would be in the government’s firing line.
“From what we understand, the government is looking for anywhere between two billion to six billion dollars from the superannuation industry, and there is no other way to do it unfortunately,” she said at the time.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 23 Aug 2017'No apparent benefit' in ATO position on ECPIBy Katarina Taurian
- 23 Aug 2017Transfer balance cap confusion posing risks for practitionersBy Miranda Brownlee
- 23 Aug 2017TBAR reporting tipped to expose illegal adviceBy Miranda Brownlee
- 22 Aug 2017Contentious views on segregation locked inBy Katarina Taurian
- 22 Aug 2017Contributions spike for 2016-17 financial yearBy Staff Reporter
- 22 Aug 2017ATO targeting illegal retirement schemesBy Staff Reporter
- view all
- Transfer balance cap confusion posing risks for practitioners
Confusion around certain aspects of the transfer balance cap could be leading some practitioners to provide advice to clients based on premi...read more
- view all