Super housing policy highlights advice needs
The complexity that will flow from the 2017 Federal Budget measures of the first home superannuation saver scheme and the $300,000 incentive for downsizers to boost retirement savings underline the need for financial advice and for advice to be tax deductible, according to the Association of Financial Advisers (AFA).
AFA chief executive, Philip Kewin said allowing first home buyers to make contributions of $15,000 per annum and $30,000 in total within existing contribution caps to their super fund to help buy their first home was a welcome policy.
“But this comes with quite a marked change in the require investment approach, with a ‘dual’ investment strategy of short-term funding for housing, and long-term funding for retirement,” Kewin said.
“These issues have again highlighted the need for professional financial advice to be tax deductible and the AFA will continue to call on the Government to legislate this.”
The incentive for older Australians to contribute $300,000 to super after selling their home would promote a sustainable retirement while freeing up supply in the residential property market, Kewin added.
While the AFA welcomed the Government’s initiative to impose a levy on banks through a Banking Executive Accountability Regime, Kewin said the budget was a missed opportunity to close the retirement savings gap among women.
“On average, Australian women have significantly lower retirement savings as they often earn less and ongoing superannuation contributions are often punctuated by family leave,” Kewin said.
The AFA would be lobbying the government to introduce specific measures to boost the financial wellbeing of women.
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