The financial services industry has broadly welcomed the Federal Government's changes with respect to self-education expenses and the tax on superannuation earnings over $100,000.
The Financial Planning Association described the Government's decision as common sense, while the Financial Services Council's chief executive, John Brogden, said the measures would help return confidence and certainty to the superannuation system.
"The former government's $100,000 earnings tax on superannuation was rushed, complex and frankly, unworkable," Brogden said.
"Today's announcement delivers on the Government's pre-election commitment of no negative changes to superannuation."
The Association of Superannuation Funds of Australia (ASFA) also welcomed the changes, with its chief executive, Pauline Vamos, saying that uncertainties regarding the way the tax would be calculated and applied had been concerning for many people, particularly retirees and those approaching retirement.
"When the measure was first announced, the Australian community expressed concern that the tax may be applied to retirees with relatively low account balances, particularly given that returns can fluctuate quite dramatically at times," she said.
Originally published by SMSF Essentials.
