FPA encourages Government to consider the long term outcomes of Federal Budget
The Financial Planning Association (FPA) submission to the federal budget 2013-14 has outlined key recommendations to improve access to financial advice to all Australians, with a focus on the ageing population.
Dante DeGori, General Manager Policy and Standards for the FPA and responsible for the FPA submission, has suggested key budgetary public policy initiatives required to meet the Government’s current reform agendas.
“The FPA believes there are specific initiatives that the government must undertake in order to improve access to financial advice for those Australians who are most in need of assistance in managing their financial affairs. These recommendations encourage longer term outlook that goes beyond the current election campaign and the impact an ageing population will have on future Government budgets.”
The three key recommendations the FPA has made are:
1. The preparation of an initial financial plan, and ongoing management fees or annual retainer fees, expressly stated to be tax deductible.
2. To immediately increase the $25,000 cap to $50,000 for all Australians over 50 years of age, regardless of their superannuation account balance.
3. A more flexible and pragmatic measure in dealing with excess concessional contributions caps.
The FPA submission outlined concern around the Government potentially tinkering with superannuation in the upcoming budget.
“The FPA, its members and the millions of Australians that they service, strongly request that the Government does not introduce any changes that will reduce the incentives and benefits of the superannuation system which encourage people to save for their retirement. With an ageing population and the additional pressure this will add to future budgets, the FPA strongly recommends that the Budget reflect policy decisions that are designed to support and encourage todays’ working Australians to become self-funded in their retirement.”
The FPA’s recommendations address the following key policy issues:
– Encouraging a savings culture and improving Australians’ retirement preparedness to reduce reliance on the social security system;
– Improving access to financial advice for those Australians who are most in need of assistance in managing their financial affairs; and
– Removing inconsistencies in the tax system.
“The FPA thanks Government and Treasury for the opportunity to contribute to the pre-budget process. We would welcome the opportunity to discuss these issues further with the Government,” said Mr DeGori.
Submissions to the federal budget 2013-14 submissions closed on 31 January 2012 and the final budget is expected to be released on budget night, Tuesday 14 May 2013.