One person’s unjust retrospective policy change is another’s overdue and necessary reform. Did people objecting about unfavourable policy retrospectivity complain when they benefitted from a retrospective change?
Tag Archives | policy changes
The 1 July 2017 changes have caused huge shifts in SMSF assets out of pension mode, and Labor’s proposed franking credit refunds policy is a further hit to self-funded retirees.
When rules are changed, behaviour changes as well. A future Labor government should not be surprised when SMSF trustees and self-funded retires minimise the impact of the removal of imputation credit refunds.
There were two camps in the ‘leave’ campaign, and the one negotiating with the EU should be pro-immigration. While this increases the chance of the UK retaining access to the common market, will the other camp allow flexibility?
In recent months, both sides of politics have explained what they mean by ‘retrospective’ changes to policy, and their new superannuation rules fall into their own definitions.
Among the Budget’s proposed super changes, little has been said about the broad impact of the new transition to retirement rules. Those who intend working beyond the age of 60 may now pay tax on their entire balance.
SMSFs transferring funds to a tax-free pension account under the proposed cap of $1.6 million will not need to sell or segregate assets from an accumulation account for the same member.
Although the proposed changes to superannuation might be worryingly detrimental to retirement outcomes, super will remain the most tax-effective retirement saving vehicle for the majority of people.
Imputation is seen as a costly tax break for domestic shareholders with minimal associated benefits for the overall economy, but any changes to the system should consider some broader consequences.
The FSI’s recommendation that the super industry should re-focus on the achievement of a retirement income, rather than just building a lump sum, is what defined benefit schemes were all about.