SUPERANNUATION – TAXATION – AUSTRALIA

Savers’ contributions after tax plunge 29pc

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Original article by Sally Patten
The Australian Financial Review – Page: 5 : 23-Nov-16

Data from the Australian Regulation & Prudential Authority shows that after-tax superannuation contributions fell by 29 per cent year-on-year in the September 2016 quarter, to $A3.7bn. Post-tax contributions totalled $A19.2bn in the year to September, which is 17 per cent lower than previously. Jordan George of the SMSF Association and Profectus Financial Group’s Mark Fenech attribute the downturn in contributions to uncertainty regarding the Federal Government’s proposed super reforms.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SMSF ASSOCIATION, PROFECTUS FINANCIAL GROUP PTY LTD, AUSTRALIAN LABOR PARTY

Super shapes as an election issue yet again

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Original article by Phillip Coorey
The Australian Financial Review – Page: 8 : 9-Nov-16

The Federal Government’s superannuation tax reforms are set to be passed by parliament, after the Australian Labor Party agreed to back the measures. However, Labor will seek a mandate for further super tax reform at the next election after Treasurer Scott Morrison refused to support the Opposition’s proposed changes to the Government’s reforms. Amongst other things, the Australian Labor Party had sought to have non-concessional contributions capped at $A75,000 per year, rather than $A100,000 as proposed by the Government.

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

Labor push for tougher cuts on superannuation

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 8-Nov-16

The Opposition will seek more changes to the Federal Government’s superannuation tax reforms in return for its support in parliament. Amongst other things, the Australian Labor Party wants non-concessional contributions to be capped at $A75,000 per year, rather than $A100,000 as proposed by the Government. The super legislation will be introduced into parliament during the second last sitting week for 2016, and the Government hopes the reforms will be passed by both houses before parliament rises for the year.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Labor to back Coalition super changes

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 8 : 7-Nov-16

Sources within the Australian Labor Party have indicated that it is likely to support most of the Federal Government’s proposed superannuation reforms. The Government has made a number of compromises in order to gain support for its reforms; amongst other things, it agreed to abandon a push to introduce a $A500,000 lifetime cap on non-concessional contributions. Meanwhile, the Senate’s legislative agenda for the week beginning 7 November includes the bill to hold a plebiscite on same-sex marriage.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY

Super done, next task is growth

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

Federal Treasurer Scott Morrison will use a speech on 16 September 2016 to call for structural economic reforms. He will argue that action is needed to boost the earnings of the nation, individuals and businesses, citing the environment of low inflation, interest rates, wages growth and economic growth. Meanwhile, Morrison has urged the Opposition to support superannuation reforms after the Coalition agreed to abandon its proposed lifetime cap on non-concessional contributions. This had been a key sticking point for the Australian Labor Party.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA

PM’s focus budget and IR

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Original article by Phillip Coorey, Laura Tingle
The Australian Financial Review – Page: 1 & 2 : 15-Sep-16

Prime Minister Malcolm Turnbull has identified the Federal Government’s key legislative priorities for the remainder of 2016. They include industrial relations reform, corporate tax cuts, superannuation tax reform and changes to competition law. Turnbull says he is "quietly confident" that the Senate will pass bills to reinstate the Australian Building & Construction Commission and establish the Registered Organisations Commission, and he may be open to compromise deals in order to ensure their passage.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, REGISTERED ORGANISATIONS COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY

70pc slugged by combined super, pension changes

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Original article by Glenda Korporaal
The Australian – Page: 2 : 13-Sep-16

The Australian Government has produced a briefing paper which shows that low-income earners stand to gain the most from proposed changes to the pension assets test and the superannuation tax regime. The paper shows that the reforms, which are slated to take effect in 2017, will adversely affect everybody except those on the lowest 30 per cent of incomes. Meanwhile, a report produced on behalf of the Institute of Public Affairs concludes that the Government’s super tax reforms will hit middle-income earners in particular.

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

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