The firm stated that with both major political parties agreeing that a reduction of the system’s burden on tax revenue is necessary, significant changes are required to reduce retirees’ reliance on the aged pension.
Brad Eppingstall, director of RSM Australia added that there is also a current need for new opportunities to open up for superannuation funds to contribute to tax revenue.
“Superannuation has always been subject to fluctuating rules, and the current issues of tax reform are unlikely to go away,” Mr Eppingstall noted.
“As the government continues with its tax white paper process, and we hear towards a likely election at the end of the year, super tax concessions will play a bigger role in the debate.
With the end of the accountant’s exemption looming overhead for 2016, RSM has identified the incoming changes as a key impact upon superannuation in 2016, with “accountants no longer able to provide financial advice on the establishment of self-managed super funds without an Australian Financial Services Licence.”
In addition to licensing requirements, the firm also flagged changes to franking credits, the removal of anti-detriment payments and the taxing of super withdrawals as possible improvements to the current superannuation system.
“The Australian superannuation industry remains in a state of controlled flux. Professional advice is vital to help you navigate the current and potential future rules while minimising your tax burden and maximising your retirement income,” said Mr Eppingstall.
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