POWERED BY MOMENTUM MEDIA
Super funds could be collateral damage
Superannuation investors would be amongst those worst affected by the fall-out from the Government moving to lower corporate tax rates and the lowered imputation tax system.
That is the assessment of Farrelly's research and management principal, Tim Farrelly in a submission to the Treasury responding to the Government's Tax Discussion Paper.
According to Farrelly, the proposal may look inviting at first blush, but "on closer examination we find it to be an unambiguously bad idea for Australians".
Farrelly's submission said such a move was likely to permanently reduce share prices by around 10 per cent, facilitate the transfer of some $6.2 billion a year from Australian investors to international investors, and result in the brunt of that transfer being borne by superannuation funds, charities, and low marginal tax payers.
Further, his submission argues the measure would be unlikely to increase the amount of investment in Australia and could harm the efficiency of Australian business investment.
However, Farrelly noted it would be boon for senior corporate executives, albeit there would be second order costs such as reduced capital gains tax receipts, and higher social security payments.
Recommended for you
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.
Hostplus’ MySuper Balanced option delivered significantly stronger returns in 2024–25, bouncing back from the previous year when its cautious stance on listed markets came at a cost to members.
Introducing reforms for strengthening simpler and faster claims handling and better servicing for First Nations members are critical priorities, according to the Super Members Council.
The Commonwealth Bank has warned that uncapped superannuation concessions may be “unsustainable” and has called for the introduction of a superannuation cap.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
