The noise and debate around the Federal Opposition’s proposed changes to dividend imputation risks further undermining confidence in superannuation, according to a Super Review roundtable conducted at the recent Conference of Major Superannuation Funds.
Participants in the roundtable agreed that while the impact of the proposed Labor Party changes on large Australian Prudential Regulation Authority (APRA) funds would be minimal, the confusing messages around the proposal would have a negative impact.
Parametric’s Raewyn Williams set the tone of the roundtable debate when she said the last thing the superannuation industry needed was a piece-meal approach to taxation reform based on a desire to fill a funding hole.
She said the fact that the proposal was aimed in part at superannuation would serve to further undermine confidence in the industry.
Willis Towers Watson head of retirement income, Nick Callil said that while the Labor policy had been fairly well-targeted and would not affect large funds, he agreed it did risk impacting sentiment, while Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck said it did close off a loophole which had been created in better budgetary times.
Legalsuper chief executive, Andrew Proebstl said the major political parties needed to think much more about “reform fatigue” where superannuation policy was concerned.
“The Government keeps tinkering with the system and all people hear is that Government is tinkering again and even if it is only targeting wealthy SMSFs it casts pall over superannuation generally and shakes confidence in the system,” he said.
Equip Super executive officer, marketing and communications, Geoff Brooks agreed with Proebstl that the debate would serve to confuse many members who might not pick up the nuances between the impact on self-managed superannuation funds and large APRA-regulated funds.
“While most of our members won’t be impacted by it, there is noise out there and members are not very good at filtering that noise,” he said.
