Chartered Accountants Australia and New Zealand (CAANZ) today welcomed bipartisan commitment to no new superannuation taxes by Prime Minister Scott Morrison and opposition leader Bill Shorten during their election campaigns.
Commenting on the move, CAANZ leader Tony Negline said superannuation was the “bedrock” that provided security for ageing Australians, as well as the wider economy, and thus certainty was required about its future.
“Today’s announcement is a good step towards providing that certainty and we look forward to more details being released on taxation and economic policies as the election campaign continues,” Negline said.
His comments follow those made by Shorten, after prompting at a media conference while campaigning in South Australia, where he said: “We have no plans to increase taxes on superannuation and no plans to introduce any new taxes on superannuation.”
The Labor Party has, however, released proposals to remove refundable franking credits and reduce the threshold for the High Income Super Contribution tax, resulting in those earning more than $200,000 a year paying double the rate of the standard 15 per cent tax on contributions.
Morrison has also assured retirees, telling a seniors’ forum in Drysdale, Victoria, that under his government there will be no higher taxes or new taxes on superannuation.
Negline said despite the promises, the CAANZ wanted to see more details of any proposed changes to super from both major parties.
“The ALP needs to share further detail on some of their super policies, such as changes to after-tax contributions and the reintroduction of a work test for deductions for personal contributions, which could be seen as tax increases on super,” he said, adding the proposed abolition of franking credit refunds also remained an area of concerns for SMSFs.
“We know the coalition has said they are going to flatten the taxation brackets, but both parties’ tax policies contain bracket creep. The coalition’s flatter taxes will not apply for many years.
“We have more questions than answers, and less than five weeks to get the information to the Australian electorate so that we can make an informed decision at the election.”
