The Financial Planning Association has made a submission to the federal budget 2013-14, highlighting the need to improve access to financial advice for Australians who are most in need of assistance in managing their financial affairs.
The submission was made on behalf of the FPA by general manager policy and standards Dante DeGori, who said “these recommendations encourage longer term outlook that goes beyond the current election campaign and the impact an ageing population will have on future Government budgets”.
The three key recommendations the FPA has made are:
1. The preparation of an initial financial plan, and on-going management fees or annual retainer fees, expressly stated to be tax deductible.
2. To immediately increase the $25,000 cap to $50,000 for all Australians over 50 years of age, regardless of their superannuation account balance.
3. A more flexible and pragmatic measure in dealing with excess concessional contributions caps.
The FPA submission outlined concern around the Government potentially tinkering with superannuation in the upcoming budget.
“The FPA, its members and the millions of Australians that they service, strongly request that the Government does not introduce any changes that will reduce the incentives and benefits of the superannuation system which encourage people to save for their retirement. With an ageing population and the additional pressure this will add to future budgets, the FPA strongly recommends that the Budget reflect policy decisions that are designed to support and encourage todays’ working Australians to become self-funded in their retirement.”
Last week, the Financial Services Council raised the same concerns, calling on the Government to leave super alone.
“Continued speculation about changes to tax rates and super arrangements is killing confidence by the day,” said FSC CEO John Brogden.
“The Government must rule out tax changes and the Coalition must rule out abolishing the low income earners concession.”
The FPA’s recommendations address the following key policy issues:
Encouraging a savings culture and improving Australians’ retirement preparedness to reduce reliance on the social security system;
Improving access to financial advice for those Australians who are most in need of assistance in managing their financial affairs; and