The constantly-changing framework surrounding self-managed super funds (SMSFs) has caused one industry expert to set up his own political party.
Prominent SMSF author and commentator Grant Abbott has launched the SMSF party and outlined his plans to protect the current benefits of existing SMSFs and their members.
Mr Abbott claims that both Liberal and Labor had abandoned the SMSF sector and claimed it was time a political party was set up and prepared to stand up and defend the industry from further clawbacks.
“For existing SMSF members and superannuants, retrospective and immediate changes like the Coalition government imposing a $1.6m Pension Transfer Balance on existing pension balances is unsettling and in short, extremely unfair,” Mr Abbott said.
“With a possible incoming Labor Government seeking to reduce non-concessional contributions to $75k, getting rid of the five-year concessional contribution averaging, knocking out refundable franking credits and a possible lowering of the pension transfer balance cap – there is a need for not only protection of existing superannuation benefits but a promise of not making further changes.
“Once retired, the last thing a retiree needs is a change to their retirement income stream, particularly self-funded retirees who have chosen to look after themselves rather than rely on the aged pension.”
Some of the other policies that Mr Abbott has outlined outside of protecting current SMSF provisions include the provision of long-term government infrastructure bonds and allowing a parent’s SMSF to partially fund a first home purchase for a lineal descendent.
Do you own an SMSF? Would you vote for a party that aimed to protect the current benefits of self-funded retirees?