Former Liberal Treasurer Peter Costello has earned a rebuke from both the Financial Planning Association (FPA) and the Minister for Superannuation and Corporate Law, Senator Nick Sherry, over his reported statements suggesting super represents a less than optimal investment destination.
Reacting to the former Treasurer’s comments, FPA deputy chief executive Deen Sanders insisted that consumers were right to seek advice and take advantage of the tax effectiveness of superannuation.
“Having an adequate, self-funded retirement income strategy for Australians has always had bi-partisan support,” he said. “When the former Government removed tax on superannuation benefits over the age of 60, they made important inroads to achieving this objective.”
Sanders said in response to client needs and the Government’s initiatives, financial planners would always assist their clients with strategies to improve their circumstances.
“Superannuation is a long-term investment vehicle and despite current performance, it remains one of the most tax effective and high performing options for Australians to save for their retirement,” he said. “Making rash, short-term investment decisions in such a volatile market is the surest way to damage long-term success.”
For his part, Senator Sherry called on the Liberal Party’s federal leadership team, Malcolm Turnbull and Julie Bishop, to publicly reject the former Treasurer’s comments.
