Reducing CGT will hit retirement funds

Reducing the Capital Gains Tax (CGT) exemption for super funds will hit the retirement savings of all fund members, the Australian Institute of Superannuation Trustees (AIST) believes.

AIST said the Government needed to re-focus super tax reform on improving fairness in the system and setting system objectives.

AIST chief executive, Tom Garcia, said cutting the CGT discount for super funds would undermine investor confidence in the compulsory super system and distort investment markets.

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"The reason CGT discounts apply in superannuation is that they provide an incentive for long-term saving and any reduction to the current discount would dilute this," Garcia said.

"Just about every week brings a different proposal for super which must be causing great uncertainty for working Australians saving for their retirement.

"Legislating objectives for super will put an end to ad hoc policy tinkering and provide a robust framework with which to assess future policy proposals," he said.




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