THE Institute of Public Accountants (IPA) has commended the Federal Government’s announcement to review the retirement income system.

“We were very pleased to hear that the Treasurer, the Hon Josh Frydenberg MP announce that he will commission the review which will include the interfaces of superannuation, government pensions and taxation,” IPA chief executive officer, Andrew Conway said.

“The review is long overdue. The importance of trying to define what a retirement living standard the system should aim for is not well defined.

“There is also the budgetary considerations of funding the age pension and superannuation tax concessions and ensuring that the system is sustainable going forward.

“The need to encourage greater investment in superannuation to facilitate self-funded retirement is critical as Australia will not be able to fund government pensions in the future, especially considering our ageing population.

“Different mechanisms need to be considered given the longevity risk when superannuation members retire.  This includes the development of annuity type products.

“However, there is significant complexity in the system with many competing interests, which must all be given due weight if we are to develop an equitable retirement income system.

“For instance, we cannot ignore the findings of the Productivity Commission report which suggested reforms to benefit members through lower fees and higher investment returns could generate an extra $533,000 for a new job entrant today when they eventually retire.

“An essential element of this review will be to provide access to affordable financial advice, which is what public accountants, as trusted advisers, can deliver,” Mr Conway said.

www.publicaccountants.org.au

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QUEENSLAND is strengthening its position as the most reliable supplier of gas on the East Coast after the Palaszczuk Government awarded more than 2700 square kilometres of energy rich land for exploration.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the economics of supply and demand were simple.

“If demand for gas is strong you need to increase supply to put downward pressure on prices,” Mr Macfarlane said.

“I applaud the Palaszczuk Government and the Resources Minister Dr Anthony Lynham for their continued support of the State’s gas industry. This is an investment into regional Queensland, where all levels of governments and farmers support the gas industry, resulting in massive economic benefits for farmers and rural and regional communities."

Brisbane-based Senex Energy was awarded 153sqkm near Miles under the domestic-only supply mechanism, while a Santos/Shell joint venture, Galilee Energy and Sajawin won the right to explore for gas across more than 2600sqkm between Miles and the border town of Inglewood. 

Mr Macfarlane said Queensland’s neighbours must take a leaf out of our book. New South Wales and Victoria can’t expect Queensland to continue to supply, and subsidise, their own gas users.

“It’s time for both sides of politics to consider rewarding States that do develop their resources, at the expense of those who don’t,” he said.

www.qrc.org.au

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the return of Senator Michaelia Cash to Cabinet as Minister for Employment, Skills, Small and Family Business.

“Senator Cash’s return as small and family business minister demonstrates the importance of this sector in Australia, getting on with the important work that’s already begun since the Minister’s initial appointment,” Ms Carnell said.

“Small business has been crying out for certainty, and now they want to see the federal government follow-through on its promises to small business and get the job done.

“Minister Cash ‘gets’ small and family business and has already shown true commitment to the sector.

“There are a number small business issues we are particularly keen on working through with Senator Cash.

“Small businesses have told us their major concerns are tax cuts, energy prices, cash flow, finding the right people with the right skills to employ and simplifying industrial relations so they can more easily employ," Ms Carnell said.

“Access to affordable capital is fundamental to the growth of small to medium enterprises (SMEs), so the delivery of the Australian Business Securitisation Fund and the Australian Business Growth Fund is essential.

“The delivery of the government’s payment times policy is crucial to small businesses, as is the continued downward pressure on power prices.

“It’s encouraging to see ‘skills’ included the Minister’s new title. Investing in change to address the needs of rural and regional small businesses in particular will create productive communities," Ms Carnell said.

“And we will continue to work with the government to deliver greater access to justice for SMEs.

“We welcome the opportunity of working with Attorney-General and Minister for Industrial Relations on the simplification of Australia’s workplace relations.

“We have identified a number of simple steps to tackle the overly complex industrial relations system for small businesses that would make a real difference to the sector," she said.

“We look forward to working closely with Senator Cash and her team to continue better outcomes for the engine room of our economy."

www.asbfeo.gov.au

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"THE RECENT Federal election result reinforces a principle that we have constantly recommended to successive governments that retirees require certainty when they plan their retirement finances, especially those who rely on modest investment income and don’t qualify for the age pension,” Association of Independent Retirees acting president Wayne Strandquist said.

“Our association acknowledges that from time to time there may be a need to increase spending on such areas as health, aged care, education and infrastructure, but targeting particular concessions and taxes or particular demographics creates unfairness and discrimination in the community," Mr Strandquist said. 

“If a large increase in revenue is required, then a comprehensive review of all taxes, concessions, royalties and excises and other revenues should be undertaken. This wide-ranging review should include a thorough impact assessment using current data to ensure that vulnerable members of the community are protected.”

He further noted, “Retirees are used to living within their means and maybe politicians should consider a similar approach when devising government expenditure policies."

Following the Federal election result, partly and fully self-funded retirees are relieved that they will not be disadvantaged through any changes to current legislation that applies to retirement savings, superannuation, Australian share dividends and franking credits, capital gains tax, negative gearing of investments (including property) and family trusts.

"Our association notes the Federal Treasurer’s recent comments that he is positively disposed to a review of the retirement income system as proposed by the Productivity Commission. This and many other recommendations made by the Productivity Commission and the Banking Royal Commission still need to be progressed," Mr Strandquist said.

“The Association of Independent Retirees looks forward to providing input on any review of the retirement income system or other recommendations that may be initiated by the newly elected government.

“However, we would be concerned if self-funded retirees of modest means, many of whom are on a part age pension, were disadvantaged by changes to legislation that impacted their current retirement income arrangements.” Mr Strandquist said.

www.independentretirees.com.au

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