- Accountants, financial planners and others in the financial sector have struggled for years to work with all the tinkering politicians have done in the area of Superannuation. Leave it alone and let the small business owner get on with proper retirement planning.
- The cost of extra compliance and regulation has made it harder to contribute to superannuation.
- The 50% CGT discount for individuals was originally a good and sound simplification of CGT indexation. It’s already down to 33.3% for superannuation funds. Labor wants to halve this discount. This will hurt Mum & Dad investors, many of whom are small business owners who struggle with super contributions after employment costs, business costs, and the rising burden of regulation and compliance. Labor’s policy will undermine what they can achieve and put extra pressure on future generations. A political money grab is the best it can be called.
Don’t strengthen Labor/Union ties and reduce SMSF investments
Superannuation funds must be able to invest to maximise the return on investment without fear or favour but Labor’s policy is to tell private super funds where to invest their funds to retain their franking credits. This is a loss of freedom to small businesses to invest wherever appropriate to build a nest egg for their retirement. BUT, it will put billions of dollars more under the control of Unions.