Delay to Dixon Advisory inquiry frustrating

News from the Senate

The Senate Program for this week, included the debate on the Better Targeted Super Concession Bill, which would see the introduction of an additional tax of 15% on super balances above $3m. This debate was scheduled to happen yesterday (Thursday 6 February), however in some positive news, the debate is not on the Order of Business today and still some way down the Notice Paper. There are four sitting days next week, so it may happen next week.

The FAAA is strongly opposed to the Better Targeted Super Concession Bill. We have two primary objections to this measure, including the taxation of unrealised capital gains and the lack of any indexation, so that over time it will impact many more Australians. We also object to the tendency of Government to continuously tinker with the tax settings for super, which undermines confidence in the overall superannuation system.

We will be watching carefully to see what happens with this Bill in the Senate next week.

In other news, on Wednesday 5 February, the Senate approved a deferral of the deadline for the Senate Economics Committee Inquiry into Wealth Management Companies (CSLR and Dixon Advisory) from 27 March to 28 July. In the context of the blow out in the cost of the scheme and the overwhelming evidence of deep flaws in the design and implementation of the CSLR, this delay is very frustrating. The FAAA was instrumental in the calling of this Inquiry last September and the reasons for an inquiry have grown exponentially since then.

When faced with the news last week that not only will the scheme potentially cost the advice profession $70m in 2025/26, but in fact much more in 2026/27, there is an absolute urgency for the Government to take action. Deferring action on the grounds of a delay in the Senate inquiry or due to calling a new review is simply not an acceptable position to take. The advice profession needs and demands greater certainty on their exposure under the CSLR and it is essential that the Government and the Parliament listen to those calls and make commitments before the election.