The Federal Treasurer, Joe Hockey had contributed to a "silly" debate by raising the prospect of allowing first home-buyers to access their super to help fund a deposit, according to Australian Institute of Superannuation Trustees (AIST) chief executive, Tom Garcia.
Opening the 25th Conference of Major Super Funds (CMSF) on the Gold Coast, Garcia warned that the debate around superannuation was being allowed to drift into dangerous areas which included not only the question of first home-buyers and super but the mandating of compulsory annuities and the value of superannuation tax concessions.
He said it was in these circumstances that there was real merit in pursuing the recent recommendations of the Financial Systems Inquiry and establishing a long-term objective for superannuation underwritten by bi-partisan political support.
Garcia said that only by establishing a long-term objective for superannuation could appropriate policies be put in place along with long-term strategies and a set of key performance indicators to determine whether the long-term objective was being met.
"Once we have agreement on the long-term objective we can have a proper debate," he said.
Garcia said he believed issues such as the value of super tax concessions required an appropriate debate which was focused on both equity and long-term objectives.
He said that also warranting debate was the retirement age and whether, rather than worrying about helping young first home-buyers, Australia's super pool was used to help increase housing stock or assist in keeping old people in the workforce.
There is a need for Australia’s superannuation funds to simplify their investment menus, according to the firm, given over a third of funds have more than 30 options, of which one or more are “arguably subscale”.
The research house is set to offer research ratings of superannuation funds for the first time amid growing demand from financial advisers.
Treasury is calling for submissions on its draft regulations in relation to the calculation of the proposed Division 296 tax.
Initially intended to offer a “simple, cost-effective” option for Aussies invested in default fund options, a super consultant has weighed in on what the scheme has actually done for members.
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