KPMG targets super to fix deficitBY MARK SMITH | THURSDAY, 28 APR 2016 12:54PMSuperannuation tax concessions should be reduced to fix Australia's ballooning structural deficit, according to global audit, tax and advisory services provider KPMG. Read more: Australia, GDP, KPMG Economics, Brendan Rynne, Low Income Super, Paul Howes Related News |
Editor's Choice
ASIC hits back at parliament: 'Simply not realistic'
The financial regulator has hit back at suggestions it isn't doing enough to deal with community complaints.
The risks and opportunities in advice: SIAA
This year's Stockbrokers and Investment Advisers Association (SIAA) Conference will take a deep dive into how major financial advice reforms will impact superannuation funds and how they are preparing to help Australians particularly retirees access advice.
AMP Advice partners with BlackRock and Lonsec
Through the partnership, AMP Advice will introduce a new category of tailored managed portfolio solutions.
Succession planning troubles family offices: J.P. Morgan
Global family offices remain deeply concerned about how to prepare the next generation to inherit a vast fortune as almost 30% do not have a structured approach to help them, a new study from J.P. Morgan reveals.
Products
Featured Profile
Fiona Mann
HEAD OF LISTED EQUITIES AND ESG
BRIGHTER SUPER
BRIGHTER SUPER
Brighter Super head of listed equities and ESG Fiona Mann was shaped by a childhood steeped in military-like discipline and global nomadism. Andrew McKean writes.
There are many holes in the Government's budget bucket. Many are exploited by the very well off in society, eg the cost of negative gearing on property is $11bn pa., and that is with low interest rates. It is much higher when rates increase. 90% of the benefits go to the top 10% of the most wealthy people.
This, and other rorts such as family trusts and diesel fuel rebates, should be the first focus of KPMG in addressing the structural budget deficit, rather than the very pointed attack on super.
It is now very difficult to build up a reasonable amount in super due to the contribution limits of $36,000 for concessional contributions. This should not be attacked as we want people to retire with dignity and not be a burden on society and their children.
Super and particularly the SGC, is for middle Australia, the 80-90% of ordinary working Australians. We focus too much on the extremes, the poor and the wealthy. Get it right for Middle Australia and then address the extremes.
The first area to be tackled is the inequity in SMSFs, which are not supervised and have rorted the system. Next is the massive SMSFs with over $5m per member.
These should be reduced to a max of $2.5m within 3 years. The new limit of $2.5m (a new RBL) should be introduced.
Our problems with super stem from ill informed "experts" butting in to a very complex subject.