Last week's superannuation announcement by the Federal Government was a step in the right direction to ‘depoliticise' the superannuation system, according to Andrea Slattery, chief executive officer of the SMSF Professionals' Association of Australia (SPAA).
"We appreciate that the Minister for Financial Services and Superannuation, Bill Shorten, was willing to listen to our concerns and acted on most of them, particularly to the discriminatory sector-specific proposals targeting SMSFs," she said.
"As a result of this pre-Budget announcement, there is now far more certainty around the superannuation system — in sharp contrast to the speculation of previous months."
Slattery said that SPAA particularly welcomed the announced increase in the concessional cap for the over-60s this year and the over-50s next year.
"(This) will assist Australians close to retirement, particularly women and those with broken work patterns, through the ability to contribute and build a more dignified and self-sufficient retirement," she said.
"SPAA has led the charge on this issue after the cap was reduced in the 2009 Federal budget, and in 2011 co-ordinated a joint industry letter calling on the Government to increase the concessional cap to $35,000 for individuals over 50."
SPAA has also welcomed changes to the excess contributions tax regime that enable individuals to seek a refund of their excess concessional contributions.
"Unlike the current regime, this measure will not be limited to excesses of less than $10,000 and will not be limited to a once-off refund," Slattery said.
"(However,) we believe a similar refunding option should apply to excess non-concessional contributions as it is the excess non-concessional contribution breaches that usually attract significant excess contributions tax, and the current options available to members who breach their non-concessional cap are grossly inadequate."
According to Slattery, the Government's decision to set up a Council of Superannuation Custodians to provide certainty and a bipartisan political approach to super was also a positive development.
"SPAA has always called for super to be sacrosanct," she said.
"The establishment of this council is a step in that direction by helping recommit to the objectives of superannuation, and to have a bipartisan approach to super as the long-term Australian retirement savings vehicle.
"This council can also address the serious issue of what the ‘true cost of superannuation' is rather than policy being developed based on tax concessions alone."
