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Labor’s Treasury ministers bring experience and offer hope for change on a range of issues, they say.
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Embrace reform large and small: Tax and super bodies
02 June 2022
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10 minute read
Tax and super professional bodies said Labor’s appointments of Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones brought welcome experience to the roles and urged them to follow through on outstanding issues from the previous government.
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They also encouraged the Albanese government to embrace the need for “major reform” of the tax system and on a range of issues from superannuation to support for small businesses.
CA ANZ group executive Simon Grant said the accountants’ body was looking forward to working with the Labor team.
“The Prime Minister has appointed an experienced and capable Cabinet with a nice balance of skills and backgrounds,” Mr Grant said.
“CA ANZ has worked very productively with the Labor Party while they were in opposition, and we look forward to continuing this positive relationship with them in government.”
SMSF Association chief executive John Maroney said both the Treasurer and Assistant Treasurer “have always been willing to listen to the issues affecting the SMSF sector” and flagged two outstanding measures from the 2021 budget for urgent legislation: changes to residency rules and legacy pensions.
Residency rule reform would extend to five years the existing two-year safe harbour exemption under the central management and control test, while an amnesty period for those in legacy pensions would offer them the chance to switch to contemporary products.
“We are confident they will appreciate the importance of these two measures and we seek their support to pass the legislation through Parliament,” Mr Maroney said.
Another advance would be giving financial advisers better access to client superannuation information through myGov, something already raised by Mr Jones.
“We appreciate this initiative, knowing that it will benefit many of our members providing support to their clients,” Mr Maroney said.
CA ANZ said both ministers’ opposition experience suggested policy areas could be quickly addressed with the cost of advice one urgent issue.
“Labor has already agreed to drop the $3,000 cap on tax advice, which is a positive outcome for everyday Australians,” Mr Grant said.
But he also raised the growing deficit and debt as just two among a raft of bigger challenges.
“Other pressing issues include simplifying the superannuation system, getting climate policy right, building greater equity in the workforce and supporting both small and big business through current economic challenges,” Mr Grant said.
Mr Grant urged the government to bite the bullet on fundamental change.
“As we have advocated for on numerous occasions, Australia’s tax system needs major reform,” Mr Grant said.
“We encourage Labor to take up this challenge and make the tough decisions that will ensure we have an effective tax system that can sustain our nation’s critically important services.
“We look forward to hearing more policy announcements and remain committed to working closely with the government as it takes the reins and leads Australia through what will be a critically important period in our economic recovery.”
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