The Commonwealth Government has proposed changes to the arrangement for SMSF retirees in part-time or casual work, including cancelling tax exemption and taxing additional income earned in retirement at 15 per cent.
Currently SMSF members over the age of 60 are allowed to draw down a pension on their superannuation while also working part time or casually tax free instead of taking out their superannuation as a lump sum amount upon retirement.
“No other pension or general superannuation fund arrangement will be subjected to this change. Unfairly prejudicing SMSF members is completely inequitable,” ASMA founding director Grant Abbott said.
“With an ageing population in Australia, the Government wants to encourage self-reliance in retirement, but changing the rules while people are making plans right now to secure their financial future is not fair or equitable,” he said.
ASMA director Anna Carrabs said the association understands that the Government is looking to bring the Federal Budget into surplus by making a numbers of budgetary changes across the board.
“However, there will be serious behavioural consequences if this goes ahead,” she said.
“People who manage their own funds will be forced to rethink how they plan and invest for their retirement,” she said.
