Will the Budget deliver an early access third tranche?
Pausing the superannuation guarantee (SG) charge at its current 9.5% and allowing a third tranche of the superannuation hardship early release scheme have emerged as two possibilities for inclusion in the Federal Budget.
The two possibilities were canvassed during a web debate between NSW Liberal Senator, Andrew Bragg, and Victoria Labor backbencher, Dr Daniel Mulino, with the question being asked in the context of the Assistant Minister for Superannuation and Financial Services, Senator Jane Hume, having referred to the popularity of the early release scheme.
Asked his opinion of the early release scheme during the Association of Superannuation Funds of Australia (ASFA) debate, Bragg described it as having been “proportionate and popular” with it having been used in the majority of cases to pay down debt or mortgages.
However, when asked whether an extension of the scheme was likely to be included in next month’s Federal Budget, Bragg referenced his relatively lowly status as a backbencher.
However, he said he was open-minded on the question.
For his part, Mulino said he believed that the Government’s policy approach had been hasty and ill-directed and had resulted in people using their personal superannuation savings to fund something which should have been the responsibility of the Government.
“In doing so, the Government has taken away the benefit of a lifetime of compound interest – that is a short-sighted approach,” Mulino said.
Recommended for you
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
