FPA welcomes government decision to halt new tax measures

Mark Rantall

The Financial Planning Association (FPA) has welcomed the Government’s announcement yesterday that it will not proceed with new tax measures, among these the Self-Education Expenses Cap and Tax on Superannuation Pensions.

Mark Rantall, CEO of the FPA, said the decision to halt the tax measures, which would have negatively impacted the superannuation system and the education and development of many professionals, is positive news for the financial planning community and beyond.

Commenting on the decision to halt a new tax on superannuation pensions, Mr Rantall said, “The proposal to tax earnings on super assets supporting income streams would have been costly, difficult to administer and would de-incentivize contributions to the superannuation system. The FPA has campaigned against these changes and the Coalition’s decision is a common-sense decision which will deliver much needed confidence in the super system. Importantly, this move will help again incentivise Australians in wanting to achieve the goal of a self-funded retirement.”

In response to the decision to halt a $2,000 cap on self-education expense, Mr Rantall continued, “Ongoing education and training is crucial to many professions, and particularly for financial planners coping with an ever changing legislative environment. The FPA does not support a capping of education and training, which in all professions is integral to the ongoing trust, confidence and quality of services delivered to consumers. Today’s decision is a win for the education of financial planners and the millions of Australians they provide advice to.”