Several associations have formed an “Alliance for a Fairer Retirement System” to explore options to fix issues with the existing superannuation taxation, Age Pension means testing, and broader retirement income systems.
The formation is a response to Labor’s proposal to disallow refunds of excess franking credits for a range of retirees and shareholders, the Alliance said.
The Australian Shareholders’ Association, the Australian Listed Investment Companies Association, National Seniors Australia, SMSF Association, the Self-managed Independent Superannuation Funds Association, and Stockbrokers & Financial Advisers Association have formed the alliance, with more groups expected to join shortly.
These associations represent millions of senior Australians, shareholders, self-funded retirees and those planning a sustainable retirement, including over one million members of self-managed super funds, the Alliance said.
Alliance spokesperson Deborah Ralston said the formation will contribute substantially to the debate on improving retirement outcomes for millions of Australians.
“We need more evidence-based research and policy development and increased bipartisan support to complete the development of Australia’s retirement income system. Once that development has been completed, there needs to be a period of ongoing stability for the system so that Australians can plan for their retirement with confidence,” she said.
The Alliance referred to a recent Rice Warner report that it said exposed many of the poor design features of Labor’s policy and the unlikelihood that the projected revenues would eventuate even if the policy was implemented.
“Labor’s proposal will cause a distortion of the market and give an unfair advantage to large tax-paying superannuation funds at the expense of everyday Australians who have worked hard, paid their taxes and carefully saved for their retirement through their SMSF or small APRA fund,” said Andrew Green, CEO of the Stockbrokers & Financial Advisers Association.