ASFA warns on tax change cost impacts
The Association of Superannuation Funds of Australia (ASFA) has warned that any move by the Government to change the taxation regime surrounding the supply of financial services to a more principles-based approach will carry with it the danger of market disruption and higher compliance costs.
In a submission responding to a Treasury consultation paper reviewing the Goods and Services Act's financial supply provisions, ASFA said it did not support the replacement of the existing regime with a principles-based approach.
It said it also did not support a reduction in the 75 per cent rate applicable to reduced input tax credits in the present rules, which it said would then need to be met from members' accounts and would thus need to be reflected in either higher fees to members or reduced investment returns.
The ASFA submission said while it had some concerns about the complexity of the financial supply provisions, having lived with them for nine years, the initial complexities and confusions had been progressively worked through.
"At considerable expense, organisations have educated their staff on the operations of the provision and have implemented appropriate IT systems and an appropriate risk management framework," it said. "The replacement of the existing law with a set of principles would likely involve significant cost, especially with respect to the reimplementation of what is largely a settled area of tax law."
AUTHOR
Mike Taylor
Recommended for you
The Assistant Treasurer has reaffirmed the government’s commitment to strengthening retirement outcomes, consumer protections and cyber resilience in superannuation.
The industry super fund has advanced reconciliation efforts with a new initiative focused on improving outcomes for First Nations members.
The regulator has announced fresh legal actions in relation to the Shield and First Guardian fund failures.
The Gateway Network Governance Body has unveiled a detailed roadmap to guide the superannuation industry through the upcoming Payday Super reforms.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
