The Investment and Financial Services Association’s (IFSA’s) influence on financial services policy debates was never more evident than in 2005, when Richard Gilbert’s lobbying played a major part in the abolition of the super surcharge.
Budget night 2005 saw the Federal Treasurer, Peter Costello, scrap the superannuation surcharge from July 1, 2005 onwards. It meant the tireless work done by IFSA chief executive Richard Gilbert and the association had paid dividends in the most significant manner.
The process was long and not confined to the past year. Gilbert and his organisation had already scored a small victory on the surcharge front in 2004, when his attempts to have the tax reduced were successful.
However, in 2005 Gilbert made the abolition of the surcharge the cornerstone of IFSA’s pre-budget submission to the Treasurer, arguing the move would be a responsible way to reaffirm super as an effective retirement savings vehicle.
Incorporated in the process were research studies commissioned by IFSA, including one that revealed the surcharge was disadvantageous to people with low superannuation balances who did not have high incomes. Further research showed 54 per cent of respondents would most likely make additional super contributions once the surcharge was scrapped, and that 15 per cent of those surveyed would definitely contribute more to their super without the tax burden.
The process came to a conclusion when the Senate ratified the Treasurer’s budget night promise by allowing the bill abolishing the unwanted surcharge to be passed in August.
The victory not only provides a valuable fillip for Gilbert and his passion for lobbying, but also translates into a $2.5 billion benefit over the next four years for Australians looking to fund their retirement.
“Advocacy is a hobby and I’m lucky enough to be able to get paid to pursue a hobby,” he says.
