Self-managed superannuation fund (SMSF) members might stand to be penalised the most by the proposed resource super profits tax (RSPT), according to a chartered accounting firm servicing the retirement savings sector.
“Many of our clients with self – managed superannuation funds have invested significant amounts into resource companies which will be adversely impacted by the resource tax,” Chan & Naylor chief executive Sal Carrero said.
“The cancellation of multi-billion dollar mining projects is now affecting mum and dad investors and their retirement nest-eggs,” he said.
Even though the tax is still yet to pass through parliament Carrero said it is already having an effect on investor sentiment and superannuation balances.
“The stalemate over the resources super profits tax is severely impacting investor confidence and the share values of resource companies,” he said.
It is now up to the government to try to restore investor confidence in the resources sector, according to Carrero.
“We now face the situation where the biggest threat to the mining sector is not international demand, but domestic confidence and the regulatory environment,” he said.
Carrero’s view is supported by the Mercer Sector Survey for May 2010 that revealed a fall in the Australian share market of 7.5 per cent for the month. The drop marked the worst one month performance since October 2008 when the market fell by 12.6 per cent.
According to Mercer one of the driving forces in driving share values down has been the discussion around the RSPT.
