Speaking to Accountants Daily, RSM partner Brad Eppingstall said the superannuation sector is calling for a halt in tinkering and reforms, in light of a looming federal election.
“Superannuation is constantly part of the political discussions, especially as a part of the election cycle. There have been significant reforms in June 2017 which limited the amount of tax free pensions to $1.6 million and further limits on contributions which are able to be made,” said Mr Eppingstall.
“The SMSF sector needs time for these changes to settle before further reforms are proposed. The constant reform and tinkering with the superannuation system reduces the confidence in the system.
“The 2017 reforms have resulted in lower contributions being made and SMSFs paying pensions are now paying more tax. The impact of the last reforms must be considered before any further changes are made.”
However, with Labor proposing to end refunds of excess imputation credits, Mr Eppingstall believes SMSF members will have more on their plate in the next 12 months.
“The proposed removal of franking credit refunds will have an impact on the cash flow of SMSFs and the retirement plans of members,” he said.
“Any final reforms are likely to be a subject to consultation, which may result in some exemptions or concessions in the SMSF space. SMSF trustees will need to consider this as a part of their planning and discuss the potential impacts with their advisers as more details are known.”
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.