Budget boosts funds management
The Federal Government’s recent Budget changes to superannuation taxation arrangements are set to fuel further growth in the funds management industry, according to a survey conducted by PricewaterhouseCoopers.
The Australian Investment Management Survey 2006, released at the Investment and Financial Services Association conference on the Gold Coast, found that the industry was enjoying a period of sustained and continuing growth, but warned that action was needed by the Government to clear the way for product rationalisation.
The survey, which sampled the views of chief executive officers in the funds management arena, found that while growth was expected to continue, some recent events had suggested that such optimism might need to be tempered.
However, it said that discussions with chief executive officers highlighted that growth would be fuelled by a number of factors, with one of the most important being the tax changes included in the Budget.
“In particular, abolition of tax on superannuation benefits for the over 60s, changes to Reasonable Benefits Limits on lump sum payments and relaxation of time limits when superannuation balances must be drawn, will mean that superannuation funds are the best choice for retirement assets,” the survey said.
AUTHOR
Mike Taylor
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