Brad Fox

The Association of Financial Advisers (AFA) has welcomed the Government’s announcement which unwind some of previous Labor Government’s taxation changes, including taxes on individual superannuation pension earnings over $100,000 and the $2,000 cap on self-education.

“In consultation with our adviser members and other stakeholders, it was obvious that the tax on superannuation earnings over $100,000 would likely cost more to administer than it would earn in revenue,” AFA CEO, Brad Fox said. “It was always going to be problematic to enforce.  The Coalition change is a positive, practical move that will help to improve stability and confidence around superannuation.”

The announcement on scrapping the cap on self-education costs is also welcome Mr Fox said.

“It is time Australia relied less on being the lucky country and we applied ourselves more to becoming the smart country,” he said. “Investing in self-education is a core element of professional behaviour and should be encouraged, rather than discouraged.”

Mr Fox said abandoning the cap means that more advisers will seek even higher education which will further enable them to deliver great advice for more Australians.

“We appreciate how quickly the Government has dealt with these issues and we look forward to continuing consulting with them,” Mr Fox said.

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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.”

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