The Financial Planning Association (FPA) is pushing once again for a major review of Australia’s retirement income regime to be included in this year’s budget.
The FPA is calling for an independent inquiry, much like the Ralph Business Tax Review, to investigate both pre and post-retirement issues such as super contributions, retirement income streams and aged health care.
Specifically, the FPA joins the chorus of voices calling for the abolition of the superannuation surcharge which it says “discourages superannuation savings and has created a $220 million administrative cost burden”. It is also calling for tax breaks for savings outside of the superannuation regime such as employee share schemes.
FPA public policy manager Con Hristodoulidis says the government’s policies are at odds with the advice provided by financial planners to their clients.
“Financial planners advise their clients to plan early for retirement yet as a nation, we are not following this advice,” he says.
“More and more Australians are taking personal responsibility for their retirement. It’s about time the Government did the same for the nation as a whole.”
