More than 350 members of an Australian self-managed superannuation fund (SMSF) association have voiced their anger and disgust over the government's proposed taxation changes to pension income.
Preliminary findings from a survey of the Australian SMSF Members Association's (ASMA) members found they are less than happy about the government's proposal of adopting a flat rate of tax on all SMSF income.
"Everywhere you look SMSFs are under attack," ASMA said in its survey email to members on Tuesday.
"[The] ACTU [the Australian Council of Trade Unions] calling for SMSFs, and no other super fund, to pay tax on unrealised gains each year; the government [is also] introducing laws to let our NZ [New Zealand] friends transfer their super into any Australian super fund except a SMSF. And then there is the growing Budget deficit.
"With SMSFs holding $430 billion in assets they are looking an easy target. The push is on and as the Voice of SMSF members it is time for us to take a stand and make that Voice heard."
In the first 24 hours since receiving the survey, 357 ASMA members expressed their strong objection to the proposed changes, an ASMA spokesperson told InvestorDaily.
"It is particularly unfair to target those who have worked hard and saved their money to prevent being a need for pensions," one ASMA member wrote.
"They have also placed money in SMSFs on basis of government promises and advice, and would be heavily disadvantaged were the tax rules to be changed now or in the future."
Other members said they the government's proposed tax changes disgusted them while others felt betrayed, threatened and vulnerable.
"The government has mismanaged the economy, and is now scrambling for ways to pursue a misguided headstrong focus on achieving a totally inappropriate goal of a budget surplus, irrespective of the cost," they said.
"This will erode a principal benefit of having an SMSF," another said.
Many members also questioned the government's motivation, calling the proposed changes as unnecessary tampering.
"I find it absolutely disgusting that governments are tampering with long term investments that are supposed to ultimately reduce reliance on government pensions," one member said.
"The government is hardly showing any restraint itself in its generosity to its politicians and public servants."
Another said: "The government is tampering around with super all the time which makes planning more difficult and takes the benefits of super away."
"Existing pensions should remain untouched otherwise my retirement will need to be stopped and I will have to return to work," another member said.
While another said: "[The government] should stop fiddling with SMSFs as we have spent 25 years saving to support ourselves in retirement, planning the rest of our lives after retirement and giving up employment. We cannot afford to have our pensions taxed now."
The ASMA survey is an opportunity for SMSF members to have their voices heard, the association said in its email.
The full results of the survey will be released later this year, most likely at ASMA's first member roadshow in December.
