By David Saul
As an advocate for the SMSF industry, I recently wrote a letter to Alan Jones expressing concern at the impact of the Super Reforms on our industry and the costly mistakes occurring as trustees rush to make changes before the new regime takes effect. Alan Jones took up the cudgel in this recent radio broadcast, listen here.
My concern lies in the dishonesty of the government in first promising not to tamper with tax-free pension accounts and then bringing in stringent reforms, which amount to retrospective taxing. Morrison promised in February 2016 not to tinker with Super in the attached article, listen here.
With such a turnaround, there is no surprise that people are angry. Alan Jones has certainly captured these feelings towards “attacks” on super.
Key points in Jones’ interview:
Taxing in retirement phase penalises savers
Amounts to retrospective taxing
Government better off to come clean with the public, be authentic, be candid
People adversely affected is approximately 9% of Super members
Risk of costly mistakes made in rush to make changes before 30 June
Superannuation benefits our society and we need a sound and stable superannuation system. A repeated theme from myself and fellow professionals is the call for stability.
I have taken many calls from SMSF Trustees and fellow SMSF Professionals who are white hot with anger at the Government’s recent announcements on super. The $500K cap on Non-Concessional Contributions is a roundabout way of taxing genuine hard working people who have placed their trust and confidence in this entity. This erodes the stability that is needed to maintain our very much needed superannuation system, which is an integral part of our retirement plans. Like many other Super professionals, I am concerned about the future of the super system.
Let me know your thoughts as I will continue to advocate via Alan Jones on the issue of Super Reforms.