Costello slams super for housing plan
CALLS for superannuation savings to be used to defray health care costs and finance housing deposits have been ruled out by the Federal Government.
Treasurer Peter Costello claimed in Parliament last week the proposal to allow first home buyers to access up to $25,000 of super funds for a house deposit was motivated by the New South Wales Government’s desire to generate more tax revenue from the property market. The state’s housing minister Joe Tripodi had earlier urged the Federal Government to consider the proposal.
“Can I say, the whole of the New South Wales Government budget runs flush on the property market of New South Wales,” Costello said.
In a response to separate proposals from the Senate Select Committee on Superannuation, the Government also said last week that its private health care rebates were a better way to cover health costs than dipping into superannuation.
The Government also rejected the Senate committee’s call for the phasing out of the 15 per cent superannuation contributions tax; the reduction of maximum tax-deductible contribution limits; the shifting of super surcharge administration from super funds to the Australian Taxation Office; and more generous tax rules for those who take their super as a lump sum.
The former chair of the committee, Liberal Senator John Watson, told Parliament the refusal to integrate health care costs with the super system was the “most disappointing” part of the Government’s response.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
