Subdued industry response to Federal Budget
The Federal Budget has receive only a lukewarm response from the financial services industry despite the Government limiting its changes to superannuation to those announced in early April.
The lack of significant change around superannuation was welcomed by the Australian Institute of Superannuation Trustees (AIST) and the Self Managed Super Professionals Association (SPAA) but the broader Budget document was condemned as a lost opportunity by the Institute of Public Accountants (IPA).
“Small businesses across Australia can expect further pain this year thanks to tonight’s Federal Budget, which has again foregone any recognition of the value of the small business sector,” according to IPA chief executive, Andrew Conway.
“Instead of a reduction in the regulatory burden and provision of long sought after tax breaks to support the vital small business sector, we find ourselves with yet another Budget that will do nothing to promote the small business sector,” he said.
By comparison, SPAA’s Graeme Colley said the organisation was “pleased that, aside from a few minor technical amendments, the Government stuck to its word and did not introduce any more changes to superannuation in tonight’s Budget”.
“SMSF trustees should now feel more confident that the superannuation system is off the Government’s radar and remains Australia’s primary retirement savings vehicle,” he said.
AIST chief executive Tom Garcia claimed there were more winners than losers in the Budget.
“Confidence in our superannuation system is critical,” he said.
“While this Budget confirms the super policy changes announced in April, these measures are relatively minor and provide some certainty for people wanting to plan for their retirement. On balance, there are more winners than losers.”
The Financial Planning Association’s Dante De Gori pointed to a Budget initiative allowing pensioners to downsize their homes without impacting their pension entitlements.
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.
