SUPERANNUATION – GOVERNMENT POLICY – AUSTRALIA

Super fix comes at cost

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 21-Jul-16

The Australian Government will allow exemptions to its proposed $A500,000 lifetime cap on non-concessional superannuation contributions, to take into account "life events" such as a divorce settlement or an inheritance. The cap had been expected to generate Budget savings of about $A550m over four years, but some estimates have suggested that the exemptions could potentially cost between $A300m and $A450m. Meanwhile, shadow treasurer Chris Bowen has stressed that any super reforms must not be retrospective. The Government plans to backdate the lifetime cap to 2007.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, FINANCIAL SERVICES COUNCIL, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Crossbench spurns super tax hike

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Original article by David Crowe
The Australian – Page: 4 : 20-Jul-16

Prime Minister Malcolm Turnbull has signalled that the Coalition is open to some changes to its proposed superannuation reforms, amid unrest within its own ranks. Allowing exemptions to the lifetime cap on non-concessional contributions is believed to be under consideration. Meanwhile, the Opposition and the Greens have both indicated that they are open to negotiation regarding the super reforms, although Senator-elect Derryn Hinch says Turnbull must put the election policy reforms to parliament rather than bow to pressure from backbenchers.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FINANCIAL SERVICES COUNCIL, NICK XENOPHON TEAM

Actuaries back $500,000 cap and call for government to push package

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Original article by Sally Rose
The Australian Financial Review – Page: 5 : 19-Jul-16

Guy Thornburn of Mercer says the Federal Government’s proposed superannuation reforms will make the system fairer and more flexible. He adds that the proposal to impose a lifetime cap of $A500,000 on non-concessional contributions is "reasonable" in the context of the broader super reforms, although he suggests that it could be backdated by just three years rather than to 2007. Lance Cunningham of BDO says the cap should be a minimum of $A1m.

CORPORATES
MERCER INVESTMENTS PTY LTD, BDO AUSTRALIA LIMITED, RICE WARNER ACTUARIES PTY LTD

PM bends to revolt over super

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 4 : 18-Jul-16

Prime Minister Malcolm Turnbull has indicated that he may be open to changes to the Coalition’s superannuation reforms. The proposed changes will be discussed at the Coalition’s party room meeting on 18 July, with some backbenchers seeking a compromise on policies such as the $A500,000 lifetime cap on non-concessional contributions. Senator Nick Xenophon says the government must reconsider the lifetime cap and limiting concessional contributions to $A25,000 a year, arguing that they will not be approved by either the Senate or the Coalition’s own party room.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Concern rises over proposed super ceiling

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Original article by Sally Patten, Joanna Mather
The Australian Financial Review – Page: 4 : 15-Jul-16

The Australian Institute of Superannuation Trustees has warned that the Federal Government’s proposed lifetime cap on non-concessional superannuation contributions could be difficult and costly for the industry to implement. It has suggested that capping annual contributions at $A50,000 would be easier for super funds to administer. The AIST has also expressed concern about the impact that reducing the cap on pre-tax contributions would have on older super fund members.

CORPORATES
AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, FINANCIAL SERVICES COUNCIL, AUSTRALIANSUPER PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD, SAVE OUR SUPER

PM steeled for Senate showdown

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Original article by David Crowe
The Australian – Page: 1 & 4 : 14-Jul-16

The Federal Government will negotiate with crossbenchers on key election policies such as company tax cuts, but Prime Minister Malcolm Turnbull has conceded that some compromises will be necessary. However, the Greens have signalled that they will oppose some of the proposed tax reforms, while Nick Xenophon says ensuring the future of Arrium and manufacturing jobs should take precedence over company tax cuts. Meanwhile, some Coalition MPs are pushing for changes to the Government’s superannuation reforms.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, NICK XENOPHON TEAM, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, CROSBY TEXTOR RESEARCH STRATEGIES RESULTS PTY LTD

PM stares down backbench revolt on super reforms

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Original article by David Crowe
The Australian – Page: 1 & 5 : 13-Jul-16

Prime Minister Malcolm Turnbull is resisting a push within the Coalition’s ranks to revise some elements of its superannuation reforms. The issue will be on the agenda of the party-room meeting on 18 July, with the proposed lifetime cap on non-concessional super contributions in particular a focus for Coalition MPs who want changes to the super policy. Meanwhile, the Australian Labor Party has given indications that it may support the lifetime cap if is not applied retrospectively.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, LIBERAL-NATIONAL PARTY OF QUEENSLAND, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED

PM faces budget fight after win

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 11-Jul-16

Cabinet secretary Arthur Sinodinos says the Coalition has a mandate for its Budget measures after winning the 2016 federal election. He has also downplayed the impact that proposed superannuation reforms had on the election result. The super reforms are likely to be a key issue on the agenda for a party-room meeting on 18 July, with the $A500,000 lifetime cap on contributions likely to come under particular scrutiny. There is also growing acceptance within the Coalition that its 10-year policy to reduce the company tax rate will not pass the Senate in its entirety.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA

Super changes to hit 1.3m

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Original article by Sally Rose, Phillip Coorey, Sally Patten
The Australian Financial Review – Page: 1 & 4 : 3-Jun-16

The Association of Superannuation Funds of Australia has estimated that up to 1.26 million individuals will be affected by the superannuation tax reforms in the Federal Government’s May 2016 Budget. This equates to about nine per cent of super fund members, compared with the Government’s forecast of about four per cent. There is growing dissent within the Liberal Party regarding the proposed changes, but Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have stressed that the reforms will be fully implemented if the Coalition wins the federal election.

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY, ELSTON PARTNERS PTY LTD

Will proposed super changes impact L-NP vote?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 17-May-16

A Roy Morgan Research Single Source survey has found that 65.5 per cent of Australian electors who hold more than $A1m in superannuation are Liberal-National Party voters, as are 46.8 per cent of those with $A150,000 to under $A1m in super. The proposed changes to superannuation in the May 2016 Budget have the potential to negatively impact these two groups, which together comprise more than one in three (37.2 per cent) L-NP voters with super. However, just 28.6 per cent of voters with super balances of less than $A50,000 intend to vote L-NP, while 32.7 per cent intend to vote for the Australian Labor Party.

CORPORATES
ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS