Several organisations have banded together to form the Alliance for a Fairer Retirement System, taking specific aim at Labor’s proposal to disallow refunds of excess franking credits for a range of retirees and shareholders.
The Australian Shareholders’ Association, the Australian Listed Investment Companies Association, National Seniors Australia, SMSF Association, the Self-managed Independent Superannuation Funds Association, and Stockbrokers & Financial Advisers Association have formed the alliance, with more groups expected to join shortly.
The Alliance has called on all political parties to “carefully consider issues related to superannuation taxation and retirement design and to ensure that policy development is undertaken on a holistic basis and not via ad hoc steps in response to short-term revenue objectives or political objectives that could undermine confidence in the retirement system”.
Alliance spokesperson Deborah Ralston said the formation will contribute substantially to the debate on improving retirement outcomes for millions of Australians.
“We need more evidence-based research and policy development and increased bipartisan support to complete the development of Australia’s retirement income system. Once that development has been completed, there needs to be a period of ongoing stability for the system so that Australians can plan for their retirement with confidence,” she said.
The Alliance referred to a recent Rice Warner report that it said had exposed many of the poor design features of Labor’s policy and the unlikelihood that the projected revenues would eventuate even if the policy was implemented.
“Labor’s proposal will cause a distortion of the market and give an unfair advantage to large tax-paying superannuation funds at the expense of everyday Australians who have worked hard, paid their taxes and carefully saved for their retirement through their SMSF or small APRA fund,” said Andrew Green, CEO of the Stockbrokers & Financial Advisers Association.
The CEO of the SMSF Association, John Maroney, welcomed the creation of the Alliance and stressed the need for clear communication on key issues.
“Let’s talk about ‘company paid tax credits’ rather than ‘franking credits’ because that’s what the issue is. Companies have already paid tax on behalf of their shareholders; hence it is appropriate for those tax credits to be available for all shareholders,” he said.
