The Financial Services Council (FSC) has joined forces with the newly-formed SMSF Owners’ Alliance to lobby both sides of politics for an agreement not to further damage confidence in the super sector by tinkering with the system.
FSC chief executive John Brogden told a press conference that all the speculation about new taxes on earnings in superannuation was negatively impacting public perception of the sector, and was likely to discourage voluntary contributions.
Mr Brogden reiterated calls that super not be viewed as a ‘honey pot’ to be used for fixing short-term problems. Although items such as the National Disability Insurance Scheme were “worthy”, the government needed to find other ways to fund them, he said.
“The system is by and large working,” he said. “If we start hacking away at it now just to deal with short-term commitments or dig the government out of a short-term hole, we really do undermine the system.”
The greatest risk would be getting 30 or 40 years down the track and finding the system has accumulated $3.5 trillion rather than $5 trillion or $6 trillion, he said.
The industry can no longer sit on the sidelines and allow further erosion of superannuation, Mr Brogden said. Despite its commitment to increasing the superannuation guarantee amount from 9 per cent to 12 per cent, the government has taken more from super in revenue than it has put in.
Executive director of the newly-formed SMSF Owners’ Alliance Duncan Fairweather said if the government kept moving the goalposts, SMSF investors would be discouraged from making voluntary contributions.
“Everyday Australians are making long-term decisions about their future savings. They need to make these decisions in a stable policy environment without the fear that their investments will be reduced in value due to constant tax changes,” Mr Fairweather said.
Both Mr Fairweather and Mr Brogden called on the government to rule out further raids on super prior to the next sitting of parliament on March 10.
