The Association of Superannuation Funds of Australia (ASFA) has expressed concern that the existing regulatory regime may be allowing members of small superannuation funds unintended access to tax minimisation and estate planning strategies.
In a submission to the Treasury commenting on the Government’s discussion paper dealing with the review of the provision of pensions in small superannuation funds, ASFA has said that as a general rule it has concerns where government policy and the implementation of that policy are not harmony because this generally led to confusion and disruption.
“The Association also does not support rules that potentially allow unintended access to tax minimisation and estate planning strategies, as this puts at risk the retirement income system,” the submission said.
“In addition, we do not judge it as good public policy to have a retirement income regime that potentially creates different tax opportunities and benefits for some sections of that regime and not for others,” ASFA said.
It said that it believed that income streams should be true to label and that some small funds were using the existing rules to create products that purported to guarantee an income stream when it was widely acknowledged that no such guarantee existed.
