The Federal Government has again made good on its promise not to make any detrimental, unexpected changes to superannuation in its first term of office.
In the Budget, handed down tonight by Treasurer Joe Hockey, there were only minor budget measures regarding unclaimed superannuation and conditions of release for terminal illnesses featuring in the superannuation space.
The SMSF Association CEO/Managing Director Andrea Slattery welcomed the stability this brought for the more than one million SMSF trustees and members, noting that such stability helped maintain confidence and trust in Australia’s world class retirement income system.
“We have been active in advocating for Governments to stop tinkering with the superannuation system and it is pleasing to see the Coalition Government is heeding this advice.
“The stability to superannuation in the current Budget cycle allows SMSF trustees and members to take a deep breath and assess their long-term strategies without having to confront constant regulatory change.”
However, as flagged before the Budget, the social security side of retirement income has been the Government’s focus with changes to means testing of the age pension to make the age pension more sustainable.
“Trustees need to consider these changes and should consult with their professional advisors to ensure their SMSF investments and strategyare on the right footing to have a sustainable retirement income,” she said.
All eyes will now turn to the Government’s long-awaited response to David Murray’s Financial System Inquiry report and the ongoing tax white paper program, where more significant changes to the superannuation system may be expected.
Source: SMSF Association
