Suggestions that the government is considering halving the capital gains discount for superannuation funds have elicited a strong reaction from the Australian Institute of Superannuation Trustees (AIST).
The federal government is contemplating halving the capital gains discount (CGT) for superannuation funds from 33 per cent to 15 per cent, the ABC reported yesterday.
In a statement released yesterday amid parliamentary debate on the topic, the Australian Institute of Superannuation Trustees (AIST) said that cutting the CGT discount for super funds would undermine investor confidence in the system.
"The reason CGT discounts apply in superannuation is that they provide an incentive for long-term saving and any reduction to the current discount would dilute this," said AIST chief executive Tom Garcia.
Mr Garcia warned against "ad hoc tax changes to superannuation" without first finalising the tax white paper process and enshrining the objectives of superannuation in law.
"Just about every week brings a different proposal for super which must be causing great uncertainty for working Australians saving for their retirement," he said.
"Legislating objectives for super will put an end to ad hoc policy tinkering and provide a robust framework with which to assess future policy proposals."