SPAA claims vindication on super changes
A report commissioned by the Australian Taxation Office (ATO) into how to communicate about superannuation reinforces what the SMSF Professionals' Association of Australia (SPAA) has been saying, according to Graeme Colley, SPAA technical director.
That is, that constant change weakens the system.
According to the report, completed by market research agency Colmar Brunton, the perceived frequency of change in superannuation undermines confidence in the system.
"If not managed under the umbrella of a uniting communications framework, individually the raft of reforms could well exacerbate this view," it said.
Colley said that such a key finding simply highlighted what SPAA had been saying for months — that frequent change diminished the public's faith in the system.
"SPAA had been getting this message from its members, and it has been quantified by the SPAA-Vanguard and SPAA-Russell Investments surveys," he said.
"In particular, the former report said that legislative change was the biggest risk to retiring comfortably, with 83 per cent of those surveyed listing it as their biggest concern."
Colley added that the ATO report also highlighted the fact that while there was broad support for the system, "many people continue to find super a difficult and confusing topic".
"Many people still find superannuation a daunting issue, which is why SPAA is such a firm advocate of having well-qualified professional advisers across all spheres of superannuation," he said.
"The more people have confidence in the advice they are receiving, the more it will underpin their willingness to use superannuation as their primary retirement vehicle."
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