Income tax savings discount
‘It’s regrettable the government has not taken the initiative to introduce measures that would encourage Australians to save outside the superannuation regime,’ Drum said.
‘CPA Australia supports the introduction of an income tax savings discount on savings earned/ derived outside of the super regime as first proposed in the Australia’s Future Tax System report (the Henry Tax Review). Such a measure would provide improve overall household savings, encourage investment and make it easier for Australians to make larger capital purchases,’ he said.
‘This budget was also the ideal opportunity for the government to commit to initiating a review of the Federal Government’s compensation for defective administration scheme, and include an increase in the compensation available to those affected.
CPA Australia recommended the government not pursue its full cost recovery model for funding ASICs regulatory activities, and reinstate funding previously cut from the ASIC budget. ASIC funding has now become an even more pressing priority given the evidence currently being heard by the banking royal commission.