One boutique adviser has speculated that any recommendations stemming from the upcoming tax white paper are unlikely to be enacted until after the next election.
With leadership tensions rife within the federal government, Bluepoint Consulting principal Tony Bates told ifa sister title SMSF Adviser that while the Coalition government will eventually want to adopt some of the recommendations of the tax white paper as policy, “legislation is still a way off”.
“I think it would be politically challenging for the government, given the current political climate for the Coalition,” said Mr Bates. “I think they’d be pretty brave to take it on prior to an election.”
Aside from examining and changing the franking credit regime, which Mr Bates said is currently very generous, the tax white paper will likely also look to even up taxes between the pension phase and accumulation phase.
“They’ve said they’re looking at the relative rate of tax between the pension phase and the accumulation phase and they’ve been quite clear they want to even that up,” said Mr Bates.
“The way I’d interpret that is there’ll be taxes on pensions whereas at the moment a super fund in pension mode is tax exempt so I see that changing and likely to be policy.”
The corporate regulator has followed through on earlier statements that it would look to hold super trustees to account ...
In what the corporate regulator’s chair calls an “increasingly complex” financial system, ASIC is seeking to maximise ...
With adviser numbers increasing and managed accounts now representing a $423 million book, Centrepoint Alliance said its ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin