ATO report backs SPAA’s position: Constant change undermines super
The ATO-commissioned report about how to communicate about superannuation reinforces what the SMSF Professionals’ Association of Australia (SPAA) has been saying about superannuation – constant change weakens the system.
The report, by the market research agency Colmar Brunton, says: “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.”
SPAA Technical Director Graeme Colley says: “This key finding in the ATO report simply highlights what SPAA has been saying for months – frequent change diminishes 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. In particular, the former report said that ‘legislative change was the biggest risk to retiring comfortably retirement, with 83% of those surveyed listing it as their biggest concern’.”
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”.
Colley says SPAA concurs with this viewpoint. “Many people still find superannuation a daunting issue, which is why SPAA is such a firm advocate of having well-qualified professional advisors across all spheres of superannuation.
“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,” he says.
