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

FPA welcomes super consistency in Budget 2013

Tonight’s Federal Budget announcement avoided further big ticket superannuation system tinkering – a point welcomed by the Financial Planning Association (FPA).

The FPA also welcomes positive changes announced in respect of the raising of superannuation caps, as recommended by the FPA in its pre-Budget submission. The cap on concessional limits to superannuation will be raised to $35,000 for 60 year olds from 1 July 2013 and will be again raised to $35,000 for 50 year olds in July 2014. The excess contribution tax rate will also be changed to reflect personal marginal tax rates, a move welcomed by the FPA.

Dante De Gori, General Manager Policy and Standards at the FPA said:

“The FPA strongly urged Government to avoid tinkering with superannuation and we are happy to see Treasurer Swan has avoided changes that would reduce incentives and benefits of the superannuation system. We endorse a sensible introduction of changes to encourage people to save for their retirement with greater certainty. The FPA encourages all working Australians to become self-funded in retirement and we welcome the changes made to the superannuation caps and to the excess contributions tax which will assist with this.”

However, the Budget did nothing to support small business.

“We are disappointed to see no announcement in support of small business across Australia. The financial planning profession has been and will continue to be under significant strain as a raft of new regulation come into effect in 2013. These small financial planning businesses will receive no support from Government with the implementation of Future of Financial Advice laws on 1 July. This is unfortunate however we encourage all financial planners to use all the tools and support being provided to you through your professional association.”

The FPA welcomed announcements made on the Disability Insurance Scheme but asked consumers to check with their financial planner to ensure they are fully covered.

“The FPA fully supports the Disability Insurance Scheme and understands the need to increase the Medicare Levy to fund this positive initiative. While the Disability Insurance Scheme will benefit a number of those who are eligible, we encourage families and those people who qualify under the scheme to speak to a qualified financial planner to ensure you are fully aware of your entitlements. FPA will continue to promote the value of advice and the need for Australians to be adequately insured as the Disability Care can only ever be a safety net and nothing can replace the benefits for effective insurance.”

Dante De Gori will be holding a free webinar for FPA members on May 15th where other financial planners can join to hear his summary on this year’s Budget. The webinar will guide FPA members on changes for financial planning stemming from the Budget and the ways in which clients may also be affected.

To read more about the FPA budget submission, click here.

The FPA Budget webinar is now fully booked, to register for a recording of the webinar, click here.