Super no longer a wealth transfer mechanism

The Federal Government appears to have substantially achieved its goal of limiting the degree to which superannuation can be used for wealth transfer, according to the Financial Services Council (FSC).

In a year-end wrap-up of policy events in the superannuation industry, the FSC’s senior policy manager for superannuation, Blake Briggs said the Government’s objective had been delivered as a result of the 2016 and 2017 Federal Budget processes.

Writing in the latest print edition of Super Review, Briggs said that while the 2017 Budget was perhaps the most substantial package of superannuation tax reforms since the 2016 Budget, the collective outcome had been substantial.

“Collectively, however, the Government has achieved its goal of materially limiting the extent to which superannuation can be used for wealth transfer,” he said.

Briggs noted that the Government had committed to no further changes in the life of the Turnbull Government -  a promise matched by Shadow Treasurer, Chris Bowen.

However, he said the net result had been an unprecedented increase in the complexity of the system.

“Uncertainty also stems from multiple Budget measures yet to be legislated, such as the first home buyer saving scheme, which consumers can conceivably already make contributions towards but is not yet the law of the land,” Briggs said.