Upgrades needed for after-tax opportunities

11 November 2011
| By Benjamin Levy |
image
image image
expand image

superannuationSuperannuation funds need to establish a consistent system and processes if they want to stimulate the take-up of after-tax reporting, according to industry experts at the Association of Super Funds of Australia conference.

In an address to a session in which delegates were asked to participate in discussions, FTSE Group director Julie Andrews suggested that a common system across all superannuation funds would make it easier to measure after-tax returns, which are widely used.

Funds that don't incorporate after-tax returns are losing out on opportunities, she suggested.

FTSE launched because there was an obvious gap in providing a practical system of implementation and an accurate measure of after-tax reporting, Andrews said.

Many superannuation funds and managers may take tax into account, but it may not be consistent and rigorous. The onus of after-tax reporting should be on all involved parties, she said.

However, Andrews said it should be up to the market to determine if the benchmarks of after-tax reporting were made standard or fully customised.

The roles of the manager, the fund, and the investor's returns need to be brought into alignment, she said.

Tax can be complex, but taking the first step of after-tax reporting didn't have to be, she added.

"Incorporating franking credits is quite standard," she said.

Ernst and Young partner Paul McLean said that while trustees have always focused to some degree on minimising and managing taxing costs, the measures to do so were not uniform and could be widely variable in effectiveness, efficiency and cost.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 6 months ago
Kevin Gorman

Super director remuneration ...

1 year 6 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 6 months ago

Economists from the big four banks have all predicted the RBA to deliver another rate cut during its July meeting; however, some admit the decision will be a close call....

3 hours ago

AMP’s strong 2024–25 returns were anything but a fluke – they were the product of a carefully recalibrated investment strategy that began several years ago, when the fund...

3 hours ago

ASIC is “considering what options” it has to hold super trustees to account for including the failed schemes on their platforms, according to its deputy chair....

3 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5