This proposal is set to be formally presented to government officials in Canberra by Daniel Shrimski, the Managing Director of Vanguard Australia, alongside other senior representatives. The initiative was previously discussed on the Professional Planner Shape of Advice podcast, where Shrimski highlighted the potential for tax incentives outside the superannuation framework.
The MyInvestment vehicle is poised to offer retail investors a capital gains tax concessional regime, enabling up to $20,000 in annual contributions. After-tax contributions, interest, dividends, and capital gains would all benefit from a tax-exempt status, providing a significant complement to the existing superannuation system, which is typically inaccessible until the age of 60.
To protect consumers and maintain clear guidelines, MyInvestment will align with MySuper's principles, offering a straightforward investment menu featuring ETFs, managed funds, fixed income, and listed property and infrastructure options. This will encourage capital mobilisation and promote longer-term savings despite any short-term market volatility.
Vanguard has advocated for retail investing to be recognised as a "fourth wealth pillar" beside housing, cash savings, and superannuation. The company argues that young Australians are disproportionately concentrated in the traditional wealth categories, which has been exacerbated by the housing affordability crisis. Current tax concessions predominantly favour high-income groups, channelling capital towards less productive assets like housing.
Research accompanying the policy proposal revealed strong public support, with 72 percent of Australians favouring a tax-advantaged retail investment vehicle such as MyInvestment. Notably, 58 percent of individuals aged 18 to 34 indicated that they would use MyInvestment to aid in saving for a house deposit.
Shrimski pointed out that a significant portion of Australian financial assets are tied up in cash, noting during the podcast that Australians seem to miss out on potential returns by holding so much in reserve. Vanguard's global study across 15 jurisdictions emphasised that Australians could benefit from diversifying their financial assets beyond cash savings.
