RETIREMENT INCOME – GOVERNMENT POLICY – AUSTRALIA

Labor aims at $5m super stockpiles

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 19-Jan-23

Assistant Treasurer Stephen Jones says the federal government will legislate an objective for superannuation. However, Labor’s legislated purpose for super will be narrower than the industry would prefer; super funds want it to include concepts such as ‘comfort in retirement’ and ‘preservation’, which critics argue would enshrine tax breaks and prevent people from making withdrawals to buy a home. Labor may also take action to cap super balances at $2m. It is estimated that tax concessions for people with super balances of more than $5m costs the budget about $1.5bn a year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Lifting super punishes women on low incomes

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Original article by Michael Roddan
The Australian – Page: 17 & 19 : 24-Feb-20

The National Foundation for Australian Women has used its submission to a review of the retirement income system to argue against progressively increasing the superannuation guarantee. Professor Helen Hodgson of the NFAW says the legislated increase from 9.5 to 12 per cent by 2024 will reduce the take-home pay of low-income earners, and women in particular. However, Women In Super contends that the increase in the super guarantee should be brought forward.

CORPORATES
NATIONAL FOUNDATION FOR AUSTRALIAN WOMEN LIMITED, WOMEN IN SUPER

Age Pension for all beats hike in super

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Original article by Adam Creighton
The Australian – Page: 2 : 13-Feb-20

Mercer has used a submission to the federal government’s review of the retirement income system to call for the superannuation guarantee to remain at 9.5 per cent and to abolish means-testing for the age pension. The super guarantee is legislated to be progressively increase to 12 per cent by 2025, and some Coalition MPs have also called for the increase to be scrapped. Michael Littlewood, who helped design New Zealand’s retirement system, says there are major problems with Australia’s retirement system.

CORPORATES
MERCER INVESTMENTS PTY LTD

Brawl over voluntary super push

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 30-Sep-19

SMSF Association chair Deborah Ralston was recently named as a members of the federal government’s review of the retirement income system. It has been revealed that Ralston wrote to Treasurer Josh Frydenberg in early July. Amongst other things, she suggested that compulsory superannuation contributions could become voluntary for people on low incomes and young workers, a proposal that has been criticised by Industry Super Australia chairman Greg Combet. Ralston also called for the abolition of tax concessions for large super balances and questioned the need to increase the super guarantee from 9.5 per cent to 12 per cent.

CORPORATES
SMSF ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, MONASH UNIVERSITY, INDUSTRY SUPER AUSTRALIA PTY LTD, ACTU, ALLIANCE FOR A FAIRER RETIREMENT SYSTEM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Lib MPs in bid to ditch super boost

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Original article by Adam Creighton
The Australian – Page: 1 & 2 : 22-Jul-19

The federal government is facing growing pressure from within its ranks to reconsider an increase in the superannuation guarantee from 9.5 per cent to 12 per cent by mid-2025. Andrew Hastie is among seven backbenchers who oppose the increase; he says it would be preferable for people to use this income to pay off their mortgage now rather than have to wait until they retire. Senator Amanda Stoker in turn says wage increases should be a higher priority at present than changes to the superannuation guarantee.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, GRATTAN INSTITUTE, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF THE TREASURY

Pensioners face delay in deeming rate relief until late September

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 9-Jul-19

The federal government has not adjusted the pension ‘deeming’ rate since March 2015, despite a sharp fall in in interest rates since then. The expenditure review committee will shortly consider reducing the deeming rate, although no action may be possible until the government undertakes its bi-annual review of pension payments on 20 September. Ian Henschke of National Seniors Australia believes that the government is able to review the deeming rate at any time, although Council on the Ageing CEO Ian Yates says the Department of Human Services’ outdated computer systems means that an immediate reduction in the deeming rate may not be possible.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, COUNCIL ON THE AGEING, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. EXPENDITURE REVIEW COMMITTEE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Workers face $20b pay hit from superannuation rise

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Original article by John Kehoe
The Australian Financial Review – Page: 3 : 3-May-19

The compulsory superannuation guarantee is slated to rise from 9.5 per cent to 12 per cent over stages between 2021 and 2025. However, the Productivity Commission recently called for any increase to be put on hold until an independent inquiry into the Australian retirement income system has been held, while the Grattan Institute argues that lifting the employer contribution to 12 per cent would cost workers $20 billion a year in take-home pay, as well as making wage growth even more sluggish than it already is.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, GRATTAN INSTITUTE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Tighter controls on super top-ups

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Original article by David Crowe
The Australian – Page: 1 & 4 : 3-May-16

The Australian Government’s May 2016 Budget will include new limits on personal contributions to superannuation funds and an increase in the tax on super contributions by people whose annual income exceeds $A250,000. The Budget will also feature superannuation measures for people on low incomes, as well as women who go on maternity leave. There will also be changes to the "transition to retirement" regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Retirees urged to sell homes

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 1-Dec-15

The Productivity Commission will release a report on housing and retirement on 1 December 2015. The commission will recommend releasing capital which is now frozen as equity in residential property. This money could be used as retirement income. Commissioner Karen Chester says Australians must change their attitude to property.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Incentives eyed for downsizers

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Original article by Gretchen Friemann, David Uren
The Australian – Page: 6 : 20-Nov-15

The Australian Government has proposed measures aimed at reducing retirees’ dependence on the age pension by encouraging them to sell their family home and use the proceeds to invest in retirement products such as annuities. Measures being considered by Treasurer Scott Morrison include a stamp duty exemption for people who downsize to a smaller home and excluding the proceeds from the sale of a family home from the assets test for the age pension.

CORPORATES
AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. PRODUCTIVITY COMMISSION, COUNCIL ON THE AGEING, CHALLENGER LIMITED – ASX CGF, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. THE TREASURY