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ICAA calls for further super reforms

The Institute of Chartered Accountants in Australia (ICAA) has called on new Treasurer Chris Bowen to continue to implement important scheduled superannuation and financial services reform, given his defined responsibilities in the revamped federal government.

Specifically, the ICAA is referring to work done on the Future of Financial Advice reforms and the regulation of financial planners providing taxation and superannuation advice when Bowen previously held the financial services portfolio.

The passing of these important reforms by the Senate marked an important step towards providing Australians with greater confidence in our taxation, superannuation and financial services sectors,” ICAA general manager of leadership and quality Yasser El-Ansary said.

“This good work, which was started by Minister Bowen, must continue to ensure we have a transparent system that protects the rights of consumers.

“I urge Treasurer Bowen and Assistant Treasurer David Bradbury to keep implementing these reforms as scheduled, to provide the public with confidence in the sector.”

In addition, the professional accounting body approved of the changes to the excess contributions tax legislation that passed through the Senate recently, believing it to be a step in the right direction.

“The existing excess contributions tax system unduly penalises individuals who, when trying to save for their retirement, make an inadvertent error in breaching their concessional contributions cap,” ICAA chief executive Lee White said.

“The new legislation will allow individuals to rectify their mistake without facing an extreme penalty.

“This outcome is a win for ‘commonsense’ and will encourage greater confidence in the superannuation system as a means of saving for a sustainable, self-funding retirement.”

White also applauded the change in legislation increasing the concessional contributions caps for people over the age of 60 from $25,000 to $35,000, saying it would help individuals make sure they had enough retirement savings.

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