They’re at it again and this time the ALP loads up another shot in it’s attempt to start a US style class war, and all because they seemingly can’t manage a budget.
When the Superannuation RBL’s (Reasonable Benefit Limit) were abolished in 2007, there was a collective sigh right across the country, especially in the Financial Planning community .
Not only could individuals now retire with a tax free income after age 60 but they could also aggressively save towards that retirement without the fear that they would lose large chunks of their hard earned savings to the tax man.
Adding a new Superannuation benefits tax, whether it be at $800,000 or $2Million sends us back to an archaic time when ordinary Australians stopped saving money out of fear that they would lose it.
Our ever increasing longevity and and rapidly growing population means that our requirement to become self funded in retirement has increased, not diminished, and we should be look for more ways to facilitate long term savings not encourage even more personal, wasteful, spending.
Most people are unlikely to ever reach the $800,000 level of Superannuation savings but for those that do, you should know, that as always, your Financial Planner will be actively looking for ways to help you achieve the best result possible within the standing legislation.
Both sides of politics have helped contributed to the savings pool that we have today and any party that seeks to dip into it to cover their own budget shortcomings shall pay a hefty price, come election time.