The Financial Services Council has welcomed infrastructure initiatives in the 2011 Federal Budget, saying they would make infrastructure a more attractive investment for superannuation funds and fund managers.

 

John Brogden, CEO of the Financial Services Council, said that roviding investors with a mechanism to more closely reflect the true value of their initial investment when long-term projects become operational and profitable was a welcome initiative.

 

He said that said that tax changes would make projects on Infrastructure Australia's national priority list more favourable to investors.

 

“The amendments to the change of ownership tests remove a tax anomaly and recognise that infrastructure projects are long-term investments.”

 

The Financial Services Council also welcomed the changes to superannuation regulations.

 

“The Government has extended the relief on drawdown for self-funded retirees. However the relief is less than previous years at only 25 per cent (currently 50 per cent). We would have liked the relief maintained at 50 per cent as the assets of many self funded retirees are yet to fully recover,” Mr Brogden said.

 

“The Government has also tidied up rules relating to excess superannuation contributions. The creation of a flexible refund mechanism for inadvertent excess superannuation contributions up to $10 000 recognises that most people make honest mistakes for which they should not be inappropriately penalised.”

 

The Financial Services Council represents Australia's retail and wholesale funds management businesses, superannuation funds, life insurers and financial advisory networks, with over 130 members who are responsible for investing more than $1.8 trillion on behalf of 11 million Australians.