The self-managed superannuation fund (SMSF) sector has unsurprisingly welcomed the re-election of the Coalition Government, after running an extensive campaign alleging that Labor’s proposed removal of franking credit tax concessions was inequitable.
The SMSF Association said that many SMSF trustees would be “relieved” that the policy, which it believed was of an “unfair and discriminatory nature”, wouldn’t be going ahead.
Association chief executive, John Maroney, pointed out that the group had collaborated with other partner associations to ensure that the policy was “well understood by the broader community” in the lead-up to the election.
In the aftermath of Saturday however, there had been much analysis around the Coalition’s labelling of the franking credit proposal as a “retiree tax” and of depictions of the policy as an unfair tax reform rather than the removal of a concession that wasn’t originally intended to be permanent.
The SMSF Association also welcomed Prime Minister Scott Morrison’s re-election as the harbinger of three years of policy stability for the superannuation sector.
“After the introduction of the significant legislative changes that took effect on 1 July 2017, it’s essential that members of superannuation funds can have a period of sustained stability,” Maroney said. “For SMSF members, policy continuity means they can focus on managing their financial needs rather than being constantly forced to consider significant changes to their retirement plans.”
Maroney said that the Association would continue to urge all political parties to legislate the objective of superannuation to encompass its wider application, purpose and how it could deliver for all Australians as a matter of priority.