RETIREMENT INCOME – AUSTRALIA

Push to include family home in pension test

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Original article by Michael Roddan
The Australian – Page: 4 : 21-Aug-19

The Actuaries Institute has published a discussion paper which examines a range of options for overhauling Australia’s retirement income system. The authors argue amongst other things that the federal government should consider measures such as including the family home in the pension assets test, the abolition part-pensions and the introduction of death duties. The paper also warns that Australia’s ageing population will put the federal Budget under growing pressure unless action is taken. The report was written by David Knox, Anthony Asher and Michael Rice.

CORPORATES
ACTUARIES INSTITUTE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, GRATTAN INSTITUTE

Costello defies PM, urges super debate

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Original article by Greg Brown
The Australian – Page: 4 : 8-Aug-19

The legislated increase in the superannuation guarantee continues to attract scrutiny, with former treasurer Peter Costello calling for the issue to be "thoroughly debated" in the Coalition’s partyroom. He says increasing the guarantee from 9.5 per cent at present to 12 per cent by mid-2025 will have "very significant ramifications", although he has stopped short of declaring his own position on the issue. A number of Coalition backbenchers oppose increasing the super guarantee.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, GRATTAN INSTITUTE

Super is about unions rather than our retirement

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Original article by Adam Creighton
The Australian – Page: 12 : 23-Jul-19

Australia’s superannuation system is now valued at $2.8 trillion, but parliament has yet to agree on what it is for. The current federal government tried a few years ago to enact a bill that would define the purpose of superannuation, but it was never passed. The main aim of superannuation should be to help people to provide for themselves in retirement, but cynics would suggest that the ‘real’ beneficiaries include fund managers, superannuation and financial planning associations, the union movement and the Labor party. It is little wonder that all these groups want the superannuation guarantee to be increased to 12 per cent, as has been legislated, although some government MPs are now against this idea.

CORPORATES
AUSTRALIAN LABOR PARTY

Labor’s deeming rate reduction predicted to cost $1b

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Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 8-Jul-19

Treasurer Josh Frydenberg says the federal government will change the deeming rate for pensioners by the end of 2019, and that over 25 per cent of pension recipients will be better off as a result. Shadow social services minister Linda Burney says a change in the deeming rate is urgently needed, and that cutting it by 1.25 per cent would see pensioners $3,875 a year better off. The deeming rate has not been changed since 2015, while cutting it by 1.25 per cent would reduce the Budget bottom line of at least $1 billion.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Veteran MPs facing a gold-plated retirement

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Original article by Richard Ferguson
The Australian – Page: 2 : 5-Mar-19

Former foreign minister Julie Bishop is among the six Liberal MPs who have chosen not to contest the 2019 election. Bishop is set to be paid more than $177,000 before tax each year in retirement, after 21 years in parliament. Liberal colleague Christopher Pyne will be paid more than $172,000 a year following a 26-year parliamentary career, while Labor’s Jennie Macklin will be entitled to an annual income of some $177,000 after 23 years in the lower house. Seven Labor MPs will retire at the election.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA

Franking plan violates fair go tax principles: retirees

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Original article by Tim Boyd
The Australian Financial Review – Page: 5 : 5-Feb-19

Retiree Bernard Shea has told a parliamentary committee that Labor’s proposal to abolish cash refunds for excess dividend imputation credits is in violation of "the pillars and basic principles of taxation". The inquiry was being held at the Merimbula RSL on the New South Wales south coast, with most submissions coming from retirees who are against the changes. Retiree Jon Gaul claimed that he would lose $6,000 a year if Labor’s policy is enacted, while Shea said the policy discriminates against self-managed superannuation funds.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED

Overhaul to boost super by $3.8bn

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 10-Jan-19

The Productivity Commission’s final report on its review of the superannuation system will be released on 10 January. It doubles down on the recommendations of an interim report that was released in May. Amongst other things, the PC recommends sweeping changes to the default super regime, including allowing new employees to choose from a list of the 10 best-performing funds. The PC estimates that its recommendations would increase the nation’s retirement savings by about $3.8bn a year. The final report of the financial services royal commission is expected to adopt some of the PC’s recommendations.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION

Property and share market slump likely to delay retirement plans for over 420,000 Australians

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Dec-18

New research from Roy Morgan shows that the number of Australians who intend to retire in the next 12 months is estimated at 426,000, a 30% increase on the level seen in 2008 when it was 328,000. Men currently represent 220,000 intending retirees. Meanwhile, the average gross wealth (total assets excluding owner-occupied homes) of intending retirees is $331,000, up from $237,000 since 2008. Up to now, superannuation has been playing an increasing role in retirement funding and currently represents 69% of the gross wealth of intending retirees, up from 53% in 2008. Although the average debt level for this group is currently only $26,000, it does reduce their average net wealth to $305,000, which is generally inadequate for self-funded retirement. The overall conclusion is that intending retirees will be relying on government benefits for some time yet, given the fact that the Association of Superannuation Funds of Australia estimates that an individual would need $545k and a couple $640k for a ‘comfortable lifestyle’. Roy Morgan’s Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 400 who intend to retire in the next 12 months.

CORPORATES
ROY MORGAN LIMITED, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Super loopholes cost retirees billions

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Original article by Anthony Klan, Olivia Caisley
The Australian – Page: 1 & 2 : 3-Dec-18

Professor Thomas Clarke says lobbyists from the financial sector have done a good job in persuading governments to go easy on the regulation of superannuation over recent decades. The University of Technology, Sydney academic says this has come at the expense of workers and retirees, who he claims are losing billions each year because of exemptions in various pieces of superannuation legislation. The Australian Institute of Superannuation Trustees, which funded Clarke’s research, states that both sides of politics have been guilty of watering down legislation.

CORPORATES
UNIVERSITY OF TECHNOLOGY, SYDNEY, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN LABOR PARTY, SUPERRATINGS PTY LTD

Labor back tracks on shares grab

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 27-Mar-18

The Australian Labor Party has announced changes to its policy to abolish cash refunds for franking credits, stating that full and part-pensioners will be exempt from its proposal. The backdown is expected to reduce the savings that Labor expects the policy to generate from $A59 billion to $A55.7 billion over the first decade of its implementation. Also exempt from the policy will be any self-managed superannuation fund that has at least one pensioner or other allowance drawing from it prior to 28 March.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF EDUCATION AND TRAINING