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Remove work test, say accountants
The Federal Government has again been urged to remove the work test for those aged over 65 and who wish to make superannuation contributions.
The call has come from the Institute of Public Accountants (IPA) with its chief executive, Andrew Conway saying that if the Government was serious about encouraging Australians to increase their superannuation balances, there was no sense prohibiting anyone from making contributions after they turn 65.
"The IPA believes the legislation needs to be amended to allow Australians to contribute to their superannuation fund irrespective of whether they are gainfully employed and irrespective of their age," he said. "A change needs to happen to allow Australians who are 65 years and over and who are not working to contribute to superannuation in situations where they are currently unable to do so."
Conway said there were multiple situations where this might be the case, including involving those who might be in the course of downsizing their homes or where a widow/widower inherited money from their spouse's estate.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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