SUPERANNUATION – GOVERNMENT POLICY – AUSTRALIA

Super cuts ‘will leave people poorer’

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Original article by Sarah Martin
The Australian – Page: 4 : 12-Sep-16

The Institute of Public Affairs warns that the Australian Government’s proposed superannuation tax reforms will adversely affect the retirement income of the people it targets. Simon Breheny of the IPA says the reforms will slash the retirement income of middle-income earners to about 58 per cent of their pre-retirement earnings. In contrast, he notes that people on low incomes can expect to receive almost 90 per cent of their pre-retirement income. Breheny argues that the Government should provide super tax relief for people on middle incomes.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA

Morrison ‘to launch super law in stages’

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Original article by Phillip Hudson
The Australian – Page: 4 : 7-Sep-16

The draft legislation for some elements of the Australian Government’s proposed superannuation tax reforms will be release on 7 September 2016. However, Treasurer Scott Morrison is still negotiating with backbenchers regarding some aspects of the reforms, including the $A500,000 lifetime cap on non-concessional contributions. Further aspects of the super reforms will be released in coming weeks. Morrison has stressed that the reforms are necessary to rein in the Budget deficit.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Morrison insists cuts come from super

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Original article by Phillip Coorey, Jacob Greber
The Australian Financial Review – Page: 4 : 31-Aug-16

Negotiations over the Federal Government’s proposed changes to superannuation are likely to continue until October 2016. Progress is likely to be slow as Treasurer Scott Morrison insists that any revenue lost through amendments must be replaced by changes within superannuation. The Government’s budget repair initiatives will also be difficult to implement.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, TD SECURITIES

PM’s new super obstacle

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Original article by David Crowe
The Australian – Page: 1 & 4 : 25-Aug-16

Opposition Leader Bill Shorten has signalled that the Australian Labor Party is prepared to support proposed superannuation reforms if the Federal Government agrees to further compromises. Labor wants the lifetime cap on non-concessional contributions to apply from 2016 rather than 2007. It will also push for the threshold for an increase in the contributions tax to be reduced to $A200,000 rather than $A250,000 as proposed by the Government. At present, people earning at least $A300,000 a year pay a contributions tax of 30 per cent instead of 15 per cent.

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

Super contributions slump after reforms unveiled

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Original article by Michael Roddan
The Australian – Page: 6 : 24-Aug-16

Data from the Australian Prudential Regulation Authority shows that personal contributions to superannuation funds fell by 11.3 per cent, or $A811m, in the June 2016 quarter. The Association of Superannuation Funds of Australia’s acting CEO Jim Minto says the figures could indicate that confidence in the super system has been undermined by the uncertainty surrounding the Federal Government’s proposed super reforms.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA

Labor: pass our budget cuts too

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 24-Aug-16

The Australian Government’s $A6.5bn spending cuts will be presented to Parliament in a single bill. The Australian Labor Party has yet to decide its position on several of the 21 measures in the "omnibus" bill, but Opposition Leader Bill Shorten says that if the Government wants Labor’s support for its spending cuts it should in turn vote in favour of the $A8.1bn worth of cuts that Labor has proposed. Meanwhile, the proposed lifetime cap on non-concessional superannuation contributions will be increased to $A750,000 after Treasurer Scott Morrison reached a compromise with Coalition MPs, although it will still be backdated to 2007.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN RENEWABLE ENERGY AGENCY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Morrison mulls super cap retreat

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 8 : 19-Aug-16

The Australian Government may make further changes to its proposed lifetime cap on non-concessional superannuation contributions. Treasurer Scott Morrison is considering options such as lifting the proposed cap from $A500,000 to $A750,000 or leaving it unchanged but not backdating it to 2007. Meanwhile, Morrison has stressed that inheritances or lottery wins will not be regarded as "life events" that will qualify for an exemption from the lifetime cap. H has also ruled out any changes to the policy on limiting retirement balance transfers to $A1.6m.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN RENEWABLE ENERGY AGENCY

Windfalls exempt from super cap

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 9-Aug-16

Australians who receive large sums of money as a result of "life events" will be offered an exemption from the proposed $A500,000 lifetime cap on non-concessional superannuation contributions. "Life events" include accident-related compensation payments, lottery wins and divorce settlements. Federal Treasurer Scott Morrison has stressed that the proposed cap on super contributions is necessary to make the super system more equitable.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, ARRIUM LIMITED – ASX ARI

Super reforms could hit half of all SMSFs

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Original article by Sally Patten
The Australian Financial Review – Page: 9 : 29-Jul-16

The SMSF Association is trying to persuade the Federal Government to amend its superannuation reforms. CEO Andrea Slattery has suggested a smaller reduction in the non-concessional super contributions limit, which the Government proposes to cut to $A25,000. According to the SMSF Association and Accurium, a 65-year old couple would need $A1 million in super savings to live comfortably in retirement, with $A59,000 to spend annually.

CORPORATES
SMSF ASSOCIATION, ACCURIUM PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Draft super laws to be released before parliament sits

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Original article by David Crowe
The Australian – Page: 1 & 5 : 22-Jul-16

The Australian Government will release draft legislation for its proposed superannuation reforms prior to the resumption of Parliament on 30 August 2016. It will also consult with industry experts before the legislation is presented to the Coaltion’s party-room. The draft legislation is expected to largely reflect the super policies outlined in the May 2016 Budget. Treasurer Scott Morrison will resist efforts to drop measures such as the life-time cap on non-concessional contributions, but some crossbenchers argue that the policies that were taken to the federal election should be put before Parliament.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF FINANCE, INSTITUTE OF PUBLIC AFFAIRS LIMITED