Maintaining and enhancing taxation incentives which encourage more Australians to invest their funds with friendly societies are the key points contained in the 2019-20 Friendly Societies of Australia (FSA) Pre-Budget Submission.
Currently, FSA members provide investment products, financial services, health care, retirement living, aged and home care services to more than 800,000 members.
In the submission, the FSA has recommended that the Government:
- retains the existing taxation arrangements for financial products offered by friendly societies; and
- considers more favourable taxation arrangements to promote greater levels of investment in scholarship plans (which would, in turn, help ease pressure on the public purse for education funding), including having an appropriate tax-free threshold on taxable benefits paid to minors under friendly societies scholarship plans, which are currently taxed at rates inappropriate for the purpose of the payments.
The FSA’s submission has been lodged today.
To view the full submission, please click here.
The 2019-20 Federal Budget will be handed down on 2 April 2019.