Thefinancial services industry has delivered a mixed response to the Federal Budget, with one association lambasting the Government for “walking away” from Australia’s retirement savings problem and another association lauding it for changes to Australia’s international tax regime.
TheAssociation of Superannuation Funds of Australia(ASFA) was highly critical of the limited reference to superannuation in the Budget.
ASFA chief executive officer Philippa Smith argues that the $300 million allocated to gradually reducing the super surcharge and aiding government’s co-contribution scheme, “has just gone missing into the slop basket of consolidated revenue and used for some other purpose”.
Meanwhile, theInvestment and Financial Services Association(IFSA) welcomed changes to the international tax regime.
However, Smith was more enthused following Senator Helen Coonan’s later comments confirming the Gvernment’s commitment to super co-contribution.
“I am heartened the Minister has affirmed the Government’s commitment to both super measures and hope there will be a renewed effort to deliver on these promises,” Smith says.
“The removal of the withholding tax on distributions due to offshore investors coming into managed funds should boost capital inflows,” says IFSA chief executive officer Richard Gilbert.
While on the income tax cuts afforded to consumers, theFinancial Planning Association’s chief executive Ken Breakspear says the compounded impact of the cuts could raise saving levels if the money is used to bolster savings and super.
