Superannuation will become a key election issue if the Govenrment uses the May Budget to deliver super tax changes which do not deliver equity, according to Australian Institute of Superannuation Trustees (AIST) chief executive, Tom Garcia.
Making his opening address to the Conference of Major Superannuation Funds (CMSF), Garcia warned the Government against seeking to pursue a "quick fix" approach to super changes in the Budget.
He said he would be very disappointed if a quick fix approach was pursued in circumstances where Australians did not need superannuation to be used as a means of fixing a Budget hole.
"The super tax changes need to pass the test of fairness or super will become a major election issue," Garcia said.
Elsewhere in his opening address, Garcia also pointed to the "myth" of people needing $1 million in super to enable a comfortable retirement.
He said this simply was not true and that super needed to viewed in the context of access to the Age Pension.
Increased regulatory reform and competitive pressures have meant most corporate funds are struggling to meet the scale required to survive, according to an industry professional.
The final draft of the $3 million super tax legislation remains unchanged and will include the taxing of unrealised gains and no indexation.
Amid Australians’ growing penchant for seamless digital experiences, an industry professional believes the most successful superannuation funds will be looking to leverage technology for their members in a number of ways.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Add new comment