“The Government announced its intended changes to superannuation before the Budget on 5 April to end the damaging uncertainty that was being caused by speculation around whether superannuation tax concessions would be cut.
 
“We are pleased that, aside from a few minor technical amendments, the Government stuck to its word and did not introduce any more changes to superannuation in tonight’s Budget.
 
“SMSF trustees should now feel more confident that the superannuation system is off the Government’s radar and remains Australia’s primary retirement savings vehicle.”
 
When the Government previously announced its superannuation policy package on 5 April, SPAA welcomed the move to provide clarity for the SMSF industry.
 
In particular, SPAA welcomed the increase to a $35,000 concessional contribution cap for over 60s in 2013-14 and over 50s in 2014-15, an issue where SPAA has been at the forefront.
 
SPAA also was positive about the proposed changes to the excess contributions tax regime to make it fairer and the establishment of a Council of Superannuation Custodians.
 
“We look forward to working with the Government when they legislate these positive changes to super,” says Mr Colley.
 
However, he cautioned that the Government’s move to apply tax to earnings above $100,000 on assets supporting income streams could introduce substantial complexities and costs to the super system.
 
“We have already outlined our concerns about this proposal to the Government, and will expect to work closely with Government on the details of this measure to minimise the costs and complexities for SMSF trustees.
 
“The fact that the Budget papers provide $43 million to administer this measure for an estimated 16,000 affected taxpayers shows its complexity.”
 
On the changes to cap self-education expense deductions at $2000 per year from 1 July 2014, Mr. Colley said that SPAA was disappointed that the Government was proceeding with this measure as it will increase the cost for SMSF professionals to maintain their current knowledge and competencies.
 
“As a market leader in SMSF accreditation, SPAA sees this change as a real blow to SMSF professionals that want to stay up-to-date and competent.”

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