More Australians should have the opportunity to self-fund their retirement, says the FPA
Following the Government’s Tax Forum in October last year, the Financial Planning Association (FPA) will again be the only voice representing the financial planning profession at tomorrow’s first sitting of the newly announced Superannuation Roundtable, chaired by Hon Bill Shorten.
The government introduced the new Superannuation Roundtable to consider ideas that arose on superannuation reform from the Tax Forum.
The aim of the Superannuation Roundtable is to discuss topics around potentially providing Australians with more options in retirement and improving certain superannuation concessions.
In this first sitting, the group is expected to discuss the proposed changes to the concessional contributions caps as a result of the transitional arrangements ending on 30 June 2012 and how it can logistically work for Australians moving forward.
As per their submission to the federal budget 2012-13, the FPA has outlined key recommendations for the concessional contributions caps in order to improve access to financial advice for all Australians.
The FPA recommends:
- Superannuation guarantee (SG) contributions are removed from the concessional contribution cap; and
- The contribution cap for those over 50 continue indefinitely at $50,000, with a provision for indexation (commencing from 1 July this year) on both the $25,000 and $50,000 caps.
Mark Rantall, CEO of the FPA said:
“The FPA welcomes this opportunity to discuss our recommendations for the concessional contributions caps and the initiatives we believe the government must undertake in order to improve transparency of, and access to, financial advice for those Australians who are most in need of assistance in managing their financial affairs.
“The long-term financial security and retirement readiness of all Australians is of utmost importance to the FPA and our members and we continue to strive to grow the financial advice profession in the best interest of the general public.”
To read the FPA submission to the federal budget 2012-13, click here.
For further information on the Superannuation Roundtable, click here.