The Financial Planning Association of Australia The Financial Planning Association of Australia

FPA responds to Government announcement on super changes

The Financial Planning Association (FPA) welcomes the Government bringing forward their announcement on the changes to the superannuation system.

Mark Rantall, CEO of the FPA said:

“We believe it is critical for Australians to have certainty and to maintain confidence in one of the best retirement systems in the world. We welcome the Government on bringing forward today’s announcement and hope that it will look to address current concerns for Australians around sustainability, equity and confidence in the superannuation system.

“We applaud the establishment of the Council of Superannuation Custodians and hope that this will serve to remove superannuation from the annual federal budget cycle and the political debate and allow an independent body, similar to the RBA to determine the appropriate policy setting for the super system.

“The FPA understands the need to make the superannuation system sustainable especially in respect to the facing baby boom retirees and longevity risk challenges for Australia. Whilst we do not support increases in superannuation taxes we understand the changes are needed to obtain sustainability and certainty for the retirement system.

The FPA also welcomes the government’s decision to amend the excess contributions tax system and the increase in the concessional contributions cap to $35,000 from 1 July 2013 for those aged 60 and over and from 1 July 2014 for those aged 50.

“We further call for both sides of politics to commit to refrain from future changes to the super system so that Australians can once again obtain confidence and trust in their retirement nest egg.”