Oh what fun we would have if Tony Abbott gave me the ministerial responsibility for superannuation! Here is what I would do on Day One:
I would abolish the requirement that the option for the Australian Receiving fund to pay the tax on an overseas transfer only exists if the overseas fund is fully cleared out. Actually, come to think of it – let’s totally abolish limits on monies coming in from legitimate overseas funds – the more overseas monies coming into Australia the better!
I would make the tax deduction generated by anti-detriment payments tax refundible. The ATO deducted the tax – give it back!
- Where the minimum pension payment is not made, I would make the ECPI deduction denied the same proportion. The “cliff effect” would be fixed.
- I would get the Trans Tasman Portability to apply to SMSFs so we have more than the embarrassing single Australian fund. (That might not happen on the first day because I could get an all expenses business class ticket to Wellington on that one!)
- I would fix up FIF/FAF for superannuation, including putting in transitional provisions for the naughty people who didn’t meet FIA requirements!
This is just the agenda for Day One. Wait until you see Day Two! Remember how we saved a considerable amount of red tape and bureaucracy when the RBL system was abolished and entry contribution limits were relied upon? On Day Two I would do the same thing to Centrelink and the ATO by paying everyone the Age Pension and then clawing it back via the tax system for people with more money.
Oh what fun!
The NetActuary Team