Accountants slam super shake-up

Nearly half of accountants surveyed by CPA Australia say 20pc of their clients will be worse off.

CPA Australia said its findings were in “stark contrast” to the government’s insistence that the changes will only affect a very small percentage of Australians. Picture: Stefan Postles/Getty Images.

Australia’s largest accounting body has slammed the Turnbull government’s superannuation shake-up, arguing the government has dramatically underestimated the number of Australians affected by the proposed changes to superannuation.

The body has also called on the government to reconsider its position on the changes, as Prime Minister Malcolm Turnbull and Treasurer Scott Morrison stare down dissent within their own Liberal Party ranks over the controversial superannuation reforms.

A poll conducted by CPA Australia showed more than two-thirds of its members in the public practice believe the Turnbull government’s changes to superannuation policy affect 6 per cent of their clients.

However, nearly half of the 1300 accountants surveyed for the poll said the changes would affect more than 20 per cent of their clients. More than a quarter of accountants said 30 per cent of their clients will be worse off.

Amid widespread outrage over the changes, which have been blasted as being “retrospective”, the government has said the planned shake-up will only affect the top 4 per cent of Australian taxpayers.

CPA Australia said the findings were in “stark contrast” to the government’s insistence that the changes will only affect a very small percentage of Australians.

CPA Australia chief executive Alex Malley said the poll results confirmed there is widespread uncertainty and confusion created by the proposed “retrospective” and “far reaching” changes.

“The government must listen to the concerns being raised. People need certainty and security to plan for their retirement — the new rules as proposed will deliver neither,” Mr Malley said.

“When the changes were announced on budget night we said they had been made without consultation and the government was completely underestimating the impact they would have,” he said.

Mr Malley said CPA members had been inundated with questions from their clients about what these changes will mean for their retirement savings.

“Our results clearly show that the government has underestimated the impact of its changes,” he said.

“The changes were announced less than a week before the government called the election and went into caretaker mode, meaning there will be no more details forthcoming about how this will work. The government seems to be scrambling to explain the changes and Treasury can’t give us any extra detail.”

“The ATO has been blindsided to the point of having to issue a special request to all tax agents to try and help it manage the extra workload.”