The Financial Planning Association (FPA) has unsurprisingly welcomed the Federal Budget, which was light on policy changes that would impact its members unlike in previous years where superannuation had been a focus, particularly welcoming the tax cuts.
Specifically, the industry body welcomed moves by Treasurer Josh Frydenberg to increase flexibility in superannuation for people aged 65 and 66, which was announced ahead of Budget night, and tax breaks for low and middle-income households.
FPA chief executive, Dante De Gori, said that the superannuation announcement would help preparing for the upcoming rise in age pension eligibility to 67 from 2020 – 2021.
The FPA was more cautious in welcoming Frydenberg’s plans to implement the Banking Royal Commission’s findings over the next five years however, noting that much of the $606.7 million required would primarily be recovered from the Australian Securities and Investments Commission’s (ASIC’s) industry funding model.
It warned that this would add to significant advice costs faced by the “mums and dads of Australia”, with De Gori stating: “We believe implementing the Royal Commission recommendations is necessary for the protection of consumers, but are concerned by how much it will cost.”