Budget gives much needed clarity on super
With no major changes to the superannuation system announced in last night's Federal Budget, industry experts believe it will provide the sector with much needed clarity.
However, this certainty may be short-lived, as RSM Bird Cameron Principal - Superannuation Solutions, Katie Timms, warned changes to super taxation system could be introduced later this year following the outcome of the tax discussion paper.
"The lack of change will provide retirees - and those planning for their future - with some much needed certainty after months of speculation about exactly how much change was coming," she said.
"Instead, it will be the outcome of the Tax White Paper Process and the Murray Financial System Inquiry that all should be anxiously waiting for. The paper raised a number of concerns over the fairness and complexity of the superannuation tax system.
"The Tax Paper, due for review in late 2015, is hoped to carefully consider the behaviours that can be encouraged by any proposed changes, along with the impact this may have on many average Australians."
A view shared by the Australian Institute of Superannuation Trustees (AIST) which said the tax review would "most likely produce its own set of recommended changes".
The AIST also flagged concerns about the Government's plans to collect an additional $46.9 million in superannuation supervisory levies.
"AIST has long argued there remains a lack of transparency in the methodology behind the raising of supervisory levies and we will continue to raise our concerns on this matter with both the Government and the Treasury," the organisation said in a statement released this morning.
Meanwhile, SMSF Association (SMSFA) chief executive, Andrea Slattery, said the "minor Budget measures" affecting super were positive for the sector.
"We have been active in advocating for Governments to stop tinkering with the superannuation system and it is pleasing to see the Coalition Government is heeding this advice," she said
"The stability to superannuation in the current Budget cycle allows SMSF trustees and members to take a deep breath and assess their long-term strategies without having to confront constant regulatory change."
However, Slattery warned that SMSF trustees would need to consider the impact of the Government's decision to change the assets test for the age pension, and consult advisers.
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