Election result offers super system opportunity for policy stability

From
John Maroney

John Maroney

A re-elected Coalition Government should ensure that the superannuation sector enjoys policy stability for the next three years, says SMSF Association CEO John Maroney.

“After the introduction of the significant legislative changes that took effect on 1 July 2017, it’s essential that members of superannuation funds can have a period of sustained stability.

“For self-managed super fund (SMSF) members, policy continuity means they can focus on managing their financial needs rather than being constantly forced to consider significant changes to their retirement plans.

“In particular, many SMSF trustees will be relieved that Labor’s proposed banning of franking credit refunds no longer threatens their retirement plans.

“The Association had made its position clear over many months that it believed this policy, as designed, would be inequitable towards many lower income shareholders, including those who choose to have an SMSF, and especially if they were in retirement.

“We collaborated with other partner associations to ensure that the unfair and discriminatory nature of the policy was well understood in the broader community. The policy also represented another major change that would further undermine confidence in superannuation.”

Maroney says the Association will urge all political parties to focus on legislating the objective of superannuation, to encompass its wider application, purpose and how it is meant to deliver for all Australians so that any future changes can be assessed through these underpinning principles.

“Considering the recent policy landscape, including the Financial Services Royal Commission and Productivity Commission, ensuring that superannuation has a clear objective will help drive meaningful and effective policy change.

“Building a successful retirement income and superannuation system requires public confidence in the efficiency and fairness of the system and, going forward, we look forward to working with all sides of politics to continue improving the super system, particularly regarding the simplicity of superannuation legislation, so that all retirees can seek to achieve a secure and dignified retirement.”

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