SUPERANNUATION – GOVERNMENT POLICY – AUSTRALIA

Super limit to hit retirees, Costello says

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Original article by Sally Patten, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 6 : 18-May-16

Future Fund chairman and former federal treasurer Peter Costello says the superannuation policies of both the Coalition and the Australian Labor Party are unlikely to be introduced due to opposition from the Greens. He has also warned that the Government’s proposal to limit tax-free super savings to $A1.6m will not provide retirees with the amount of income it expects, as the forecasts are based on a rate of return of 5.5 per cent. In contrast, the yield on 10-year Australian government recently fell to a record low of 2.2 per cent.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Coalition sells policy changes as ‘fair’

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Original article by Dennis Shanahan
The Australian – Page: 6 : 13-May-16

The Australian Government has defended its May 2106 Budget measures on the taxation of superannuation, with Cabinet Secretary Arthur Sinodinos and ex-prime minister Tony Abbott stressing that the changes are not retrospective. Sinodinos says the fact that some wealthy people are concerned about the changes demonstrates that the proposed reforms are fair. Abbott describes the reforms as a "gutsy call" by the Government and the right course of action.

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

No changes to super cuts: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 12-May-16

Prime Minister Malcolm Turnbull has tried to pacify his electoral base by stating categorically that the proposed new limits on superannuation contributions for wealthy investors would not be retrospective. He said on 10 May 2016 that the substance of the new laws would not be changed but the Government is willing to discuss "the technicalities of the drafting." The proposed changes include a lifetime cap of $A500,000 on non-concessional contributions to super and a $A1.6 million limit on total super savings.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA

Labor to revive 12 per cent super guarantee

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 11-May-16

Shadow treasurer Chris Bowen has told the National Press Club that the Australian Labor Party will act quickly to release a mini-Budget if it wins the federal election on 2 July 2016. He also indicated that Labor will reinstate plans to lift the employer superannuation contribution to 12 per cent. The Australian Government put this policy on hold after abolishing the mining tax. The super guarantee has been increased from nine per cent to 9.5 per cent, but at present it is not slated to rise to 12 per cent until 2025.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA)

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

Super curbs to top up women

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 2-May-16

The Australian Government’s May 2016 Budget will include a scheme that is similar to the Low Income Superannuation Contribution, which provides people on low incomes with a government co-contribution. Treasurer Scott Morrison says the "top-up" scheme will be funded via a reduction in superannuation tax concessions. The Budget will also include an increase in the $A80,001 income tax threshold in order to combat so-called bracket creep.

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

High earners may cop super tax rises

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 27-Apr-16

The Australian Government’s May 2016 Budget might include reducing the income threshold for the 30 per cent tax rate for superannuation contributions from $A300,000 to $A250,000. This is the same threshold that was proposed by the Opposition in 2015. Meanwhile, the Government is believed to have ruled out reducing the level of super contributions that attract the concessional tax rate from $A30,000 a year to $A20,000. Other super changes include abolition of the anti-detriment payment and transition-to-retirement provisions.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD

Mandatory super comes under fire

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Original article by Sally Rose, Joanna Mather, Misa Han, Patrick Durkin
The Australian Financial Review – Page: 1 : 22-Feb-16

A spokesman for Treasurer Scott Morrison has downplayed media reports which suggested that the Federal Government may allow low-income earners to opt out of the superannuation system. The proposal has received support from David Murray, who headed the Government’s financial system inquiry, although it has attracted criticism from the superannuation industry and key employer groups.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, THE AUSTRALIAN INDUSTRY GROUP, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, DELOITTE TOUCHE TOHMATSU LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, FINANCIAL SERVICES COUNCIL, INDUSTRY SUPER AUSTRALIA PTY LTD, NATIONAL PARTY OF AUSTRALIA, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, REST SUPER PTY LTD, VISION SUPER PTY LTD

Retail funds not exempt from disclosure rules: O’Dwyer

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Original article by Sally Rose
The Age – Page: 23 : 29-Jan-16

There will be no exemptions from the product disclosure "dashboard" rules that are designed to allow investors to compare the performance and fees of superannuation funds. Industry Super Australia stated on 28 January 2016 that exemptions from the disclosure rules would apply to about 72 per cent of choice of fund products. However, Assistant Treasurer Kelly O’Dwyer says all funds will have to comply with the new rules.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, SUPERRATINGS PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES

Wealthy accept super tax rise, adviser says

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Original article by Sally Rose, Joanna Mather
The Australian Financial Review – Page: 4 : 14-Jan-16

There is growing recognition that superannuation tax breaks are too generous for the wealthy. Under the current regime, the super contributions of those earning less than $A300,000 a year are taxed at 15 per cent. A tax rate of 30 per cent applies to the contributions of those with annual earnings of more than $A300,000. Deloitte has proposed reducing the tax rate on super for low-income earners to six per cent and raise it to 34 per cent for those earning between $A180,000 and $A300,000.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RICE WARNER ACTUARIES PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, FINANCIAL SERVICES COUNCIL