POWERED BY MOMENTUM MEDIA
SMSF Association backs franking credit inquiry
The SMSF Association has backed the House of Representatives Standing Committee on Economics’ decision to inquire into the implications of removing refundable franking credits.
SMSF Association CEO, John Maroney, said it was their belief that the proposal would affect more than one million Australians either saving for or in retirement, and the organisation remained “resolutely opposed” to the Labor Party’s proposal.
Maroney said the inquiry offered an important opportunity for retirees and savers that would be negatively affected by the removal of franking credits to voice their concerns to the Committee.
He stressed it wouldn’t just be the wealthy that were affected by the proposal and pointed to an analysis of Australian Taxation Office and Treasury data that showed it was those on modest incomes who it would hit the hardest.
“The most likely consequence if this proposal sees the light of day will be to substantially damage the lifestyles of retirees who have prudently saved and are carefully drawing down on their retirement savings,” he said.
“It will also undermine confidence in the system, especially when considered in conjunction with the enormous changes introduced on 1 July 2017, having the deleterious effect of sending many retirees back to the drawing board to rethink their retirement income strategies.”
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
