The Association of Financial Advisers is one of a number of industry associations to join a newly-formed lobby group created in response to Labor’s proposal to disallow franking credit refunds.
The Alliance for a Fairer Retirement System said in a statement that it formed last month to “represent millions of senior Australians, shareholders, self-funded retirees” in response to the Labor proposal.
According to the statement, the Alliance is comprised of nine organisations including the AFA, the SMSF Association, and the Stockbrokers and Financial Advisers Association.
“Many small business owners may be unaware of the impact of Labor’s proposal on their retirement plans,” said Alliance spokesperson and Monash University professor Deborah Ralston.
“Those who have invested equity in their company and rely on dividends to fund their retirement may be surprised to find a significant fall in income.”
The statement said the Alliance intends to “explore options to fix problems with the existing superannuation taxation, age pension means testing and broader retirement income systems”.
Several firms have been impacted by the corporate regulator’s action.
Super funds must now have a retirement income strategy in place.
Vanguard has called for a complete overhaul of the advice industry.
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