I just watched Prime Minister Scott Morrison’s address to the SMSF Association Conference and it riled me up with anger. Here he is pounding on about the impact that the Labor’s non-refundable franking credits and it being a retiree tax, when only a short 18 months ago Morrison, the Treasurer introduced:
- The $1.6M pension transfer balance – in essence, a reasonable benefit limit. Mind you the last time that RBLs were in – 2006 the Pension RBL was $1.6M. AND it was retrospective with many pension members with account balances larger than this up for a genuine “retiree tax” increase thanks to a loss of pension exemption. Thanks Morrison and all efforts to change the rules fell on deaf ears.
- A reduction in the concessional contributions cap for over 50’s to the same as a 14 years-old employee. This really gets me going. It is hard enough in our 30s and 40s to work hard, raise a family, pay school fees and mortgages – savings, apart from SGC super does not get a look in. When the 50’s hit and cash flow is freed up that is the time to play catch up retirement savings. Not according to Morrison – those hoping to be self-funded retirees shafted.
- Non-concessional contribution caps – down from $180,000 to $100,000. What is going on? That is a serious reduction that impacted small business owners selling their business, those looking to set up a self-funded retirement income stream in their own SMSF but shafted by Morrison.
- Assets Test Exemption: As the money starts to dry up in self-funding retirement, those who have worked hard and paid a lot of taxes, need to boost retirement income with the aged pension. But to drop the Asset Test threshold from $1.3M to $830,000 in one swoop is too much. Again, Morrison is to blame!
So don’t come out banging on about Labor’s tax changes, which will significantly impact self-funded retirees, SMSF members and soon-to-be-retired business owners, when the changes you introduced caused irreparable harm and set the stage for Labor’s proposals.
And it is this lack of concern for self-funded retirees, in fact I would go so far as to say, disrespect, that started the SMSF Party. Let’s face it Prime Minister Morrison, if you really want to get rid of retiree taxes, start by winding back the ones you introduced in 2017.
We are not stupid; our memories stretch back to 2017. The changes you made, impacted not only us but our families. Is it any wonder that we are cynical about the current breed of politicians?