Dragan Savic. 12 August 2013

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Dragan Savic. 12 August 2013"

Transcription

1 FSC Deloitte Future Leaders Award 2013 Australia s ageing population What existing policy settings could be changed, or new polices implemented, to better insulate Australia from the future economic impacts of an ageing population? Dragan Savic 12 August 2013 Australia s population is ageing and the resulting changes in the demographic structure of the country will bring about significant challenges for policy makers. This paper examines policy settings relating to the retirement system and financial services industry that will reduce the future economic impacts of population ageing in Australia. The ageing population will slow economic growth due to falling participation rates and lower discretionary spending by retirees. Together with sluggish economic growth, there will be a lower tax pool from which to fund increasing government spending on the Age Pension and healthcare. This will result in a fiscal gap in the Federal budget placing further strain on the economy through higher taxes and debt. To reduce the impact of an ageing population, the goal of policy settings should be to maximize private retirement savings through superannuation and increase the incidence of self-funded retirement. This will reduce spending on the Age Pension and in turn the budgetary fiscal gap. To achieve this, policy settings should increase compulsory and voluntary contributions to superannuation. The preservation age and Age Pension eligibility age need to increase to encourage deferral of retirement. Policies should ensure optimal use of superannuation savings post retirement through annuity products and increase capacity to privately fund health expenditure through superannuation. Increasing Australia s engagement with superannuation is crucial as this will ensure people start planning for their retirement earlier in life, thus being more prepared for retirement.

2 Contents 1. Introduction Economic impact of population ageing Increasing savings through the accumulation phase Voluntary contributions Superannuation guarantee Contribution caps Reducing contribution tax Threshold for receiving superannuation guarantee Parental leave super payments Deferring retirement Age Pension eligibility age Preservation age Encouraging older Australians to remain in the workforce Post retirement phase Lump sums or income streams Annuity products Default options in retirement Healthcare and superannuation Engagement Conclusion References

3 1. Introduction The rate of population ageing in Australia is unprecedented and will permanently change the demographics of the country. The changing age structure of the population will have far reaching and severe economic impacts. As a large proportion of the population retires from employment, Australia will experience lower economic growth due to falling productivity and less discretionary spending from retirees. Additionally, there will be a lower tax pool from which to fund increased government spending on social welfare such as the Age Pension and healthcare. These conditions will result in a fiscal gap in the Federal budget, needing additional funding through higher taxes or increasing debt, further stifling economic growth. A range of policy settings can be changed or implemented to combat the economic effects of population ageing. This paper focuses on polices directly related to the retirement system and the financial services industry. Policy settings should: promote self funding of retirement through increasing superannuation savings; encourage a longer duration in employment; ensure optimal use of superannuation savings post retirement; increase capacity to privately fund health expenditure through superannuation; and increase engagement with superannuation. Through these measures, Australians will have greater capacity to self-fund their retirement and have a higher disposable income in retirement to inject into the economy. These policy settings will also reduce government spending on the Age Pension and in turn the budgetary fiscal gap. Reducing fiscal pressure on the Federal Budget will help maintain lower taxes and government debt, stimulating the economy and insulating Australia from the economic effect of an ageing population. Abrupt policy changes can cause in confusion and diminish confidence in the retirement system resulting in less than optimal long term investment decisions. Any changes to existing policies or implementation of new policies should be done in consultation with the industry and phased in over appropriate time horizons to ensure stability and certainty in the system. 3

4 2. Economic impact of population ageing Population ageing is the process where older individuals become a proportionately larger share of the total population 1 and is caused by declining birth rates and increasing life expectancy. 2 The changing structure of Australia s population is illustrated in Figure 1, moving from relatively youthful in 1925 to a much higher proportion of older Australians going forward. Figure 1: Changing age structure of Australian population, Source: Productivity Commission 2005, Economic implications of an Ageing Australia, Research Report, Canberra As Australia s population gets older the proportion of people over 65 years will increase (see Figure 2) and is expected to be over 20% by This will lead to a decline in total labour force participation from 65% today to less than 61% in resulting in lower productivity and decreased economic growth. The percent of the population aged over 85 years is particularly alarming because at this age a person has less capacity to contribute to the economy and is likely to be a greater burden through increased Age Pension and healthcare spending. 1 United Nations, 2002, World Population Ageing Australian Government, 2004, Australia s Demographic Challenges 3 Australian Government Treasury Department, 2010, Intergenerational Report

5 Figure 2: Proportions of Australian population aged over 65 Source: Intergenerational Report 2010 Conversely, the number of working aged people (between 18 and 65 years) will fall. In 1997 there were 5.5 people of working age to each Australian aged over 65 years and this ratio is expected to fall to 2.5 by This means the tax pool to fund increased spending on the Age Pension and healthcare will be proportionately lower than today, causing substantial fiscal pressure as illustrated in Figure 3. Figure 3: Projected fiscal gap Source: Intergenerational Report Carey, D, 1999, Coping with Population Ageing in Australia Economics Department Working Papers No 217 5

6 The fiscal gap will need to be financed through increased government debt or higher taxes. Financing through continued government debt is unsustainable and would result in massive accumulation of debt that would need to be paid back by future generations. Financing the gap through increased tax in each year in which it fell would imply an increase in the tax to GDP ratio of 6.4 percentage points by 2045, or an increase of 21% in average tax rates. 5 Alternatively the fiscal gap can be reduced through lower public services, which like debt or high taxes is undesirable. If appropriate policies are not implemented today, Australia faces a bleak future due to its ageing population. 3. Increasing savings through the accumulation phase Over the coming decades approximately 75% of Australians will rely on a full or partial Age Pension to support their retirement. 6 As the proportion of retirees increases, government spending on the Age Pension will increase to 4% of GDP and will be the second highest area of government spending by , behind healthcare which is also linked to the ageing population (see Figure 4). Figure 4: Projections of Australian government modelled spending by category Source: Intergenerational Report 2010 Setting policies that increase private retirement savings through superannuation will reduce reliance on the Age Pension which in turn will lessen the extent of the fiscal gap. This will reduce the economic impacts of ageing. Increasing retirement savings will also benefit the economy as retirees will have more disposable income to spend on restaurants, retail, entertainment, travel and all the other discretionary spending that stimulates the economy. 7 5 Productivity Commission 2005, Economic implications of an Ageing Australia, Research Report, Canberra 6 Rice Warner Actuaries, August 2012, Reforming the Age Pension 7 Cooper, B, 19 April 2013, The future of superannuation: Purpose, engagement, importance, American Chamber of Commerce 6

7 With higher personal assets, less retirees will be eligible for the Commonwealth Seniors Health Card or the Pensioner Concession card, hence reducing government expenditure on health. In lieu of government funded health concessions, more retirees will be covered by private health insurance. Due to tax concessions, 8 policies which aim to bolster superannuation contributions will result in less tax revenue for the Federal Budget, increasing fiscal pressure in the short term. However, the forgone revenue should be seen as a long-term investment by the government to reduce the effects of ageing. 9 This will result in future budgetary savings through lower Age Pension payments, building future certainty through decreased funding obligations tomorrow in exchange for reduced tax revenue today. 10 There are a number of policy settings which can increase retirement savings through superannuation and they are discussed below. 3.1 Voluntary contributions Improving voluntary superannuation contributions was considered the most important factor in addressing retirement savings adequacy in the 2011 Financial Services Council/PwC CEO Report. 11 Currently, only 20% of employees make voluntary contributions. 12 One way to increase this figure is to implement a policy of soft compulsion. Under the above policy, 3% of the employee s gross income would be contributed into superannuation as a concessional contribution, paid directly by employers. Employees who do not wish to make this additional contribution would have the option to opt-out. 3.2 Superannuation guarantee Due to the inherent uncertainty in the value of superannuation contributions made from an opt-out policy, it may be necessary to take a more prescriptive policy tactic. One such strategy is legislating an additional increase in the superannuation guarantee (SG) rate. Following the SG increase from 9% to 12% gradually implemented to 2019, a further increase to 15% should be incrementally phased in by The resulting increase in superannuation savings can be measured by the fall in the Retirement Savings Gap (RSG), being the value of the shortfall the working population will in have funding an adequate retirement. It is estimated that increasing the SG rate from 9% to 12% will reduce the RSG as at 30 June 2011 by $184 billion or 18% 13 and it is expected an increase of SG to 15% will have similar results. 3.3 Contribution caps The Association of Superannuation Funds of Australia Limited (ASFA) recommends annual caps on concessional and non-concessional contributions be changed to lifetime caps. 8 Within the superannuation environment investment earnings and pre-tax contributions are taxed at 15% and capital gains tax is reduced to 10% on assets held for more than 12 months. Once in pension phase, the tax rate is reduced to 0% for investment income and capital gains. 9 Mercer Submission to Australian Tax Forum, Keating, P, Address to ASFA National Conference and Super Expo, 2012, Sydney 11 PwC, July 2011, Financial Services Council/PwC CEO Report Shaping the future of our industry 12 Association of Superannuation Funds of Australia Limited, February 2011, Spotlight on Henry: A comparative analysis of the Henry Recommendations with the proposed increase of the Superannuation Guarantee to 12 per cent 13 Rice Warner Actuaries, March 2012, Retirement Savings Gap at 30 June

8 Lifetime contribution caps recognise the average person has varying capacity to make voluntary contributions at different phases of their life. Under such a system, caps could be set at $1.5 million for concessional contributions and $2.5 million for non-concessional contributions, with compulsory contributions excluded from the caps. This system would allow people to make contributions when they have the means, resulting in higher superannuation balances. 3.4 Reducing contribution tax Recently legislation designed to increase short-term government cash flow was implemented whereby individuals earning more than $300,000 per year will be subject to 30% tax on concessional contributions to superannuation. This policy should be repealed as it is an example of short-term thinking with negative longterm consequences. It will directly reduce superannuation balances while being complicated and costly for the superannuation industry to administer. These additional administration costs will be passed on to all members of a superannuation fund reducing the efficiency of superannuation as a vehicle for retirement savings. A similar policy was implemented in 1996 and it ended up costing the superannuation industry and members as much to administer as the government collected in extra taxes Threshold for receiving superannuation guarantee Currently there is a minimum salary threshold of $450 per month for receiving SG payments which disadvantages part time and low paid employees. Removing the threshold would benefit around 250,000 individuals 15 and is a simple and cost effective way of increasing retirement savings. Even though these individuals would only receive modest contributions the compounding nature of superannuation would result in meaningful increases in their retirement savings. 3.6 Parental leave super payments Under current legislation SG contributions do not apply to paid parental leave. 16 Changing the legislation to include SG contributions on paid parental leave will help increase superannuation savings for individuals who take time out of the workforce to start a family. The cost to the government of implementing this policy is estimated to only be around $20m per year. 17 Employers such as the Westpac Group have a policy of providing full superannuation payments to employees for up to 52 weeks while on parental leave. 18 The cost of such a policy would be prohibitive for most small businesses however, for large employers the government could mandate that a similar policy is adopted. 14 Power, T, 26 May 2013, Double contributions tax for high-income earners, Super Guide 15 Clare, R, September 2012, Equity and superannuation the real issues, The Association of Superannuation Funds of Australia Limited 16 Australian Government Department of Human Services 17 Clare, R, September 2012, Equity and superannuation the real issues, The Association of Superannuation Funds of Australia Limited 18 Workplace Gender Equality Agency, The how to guide for employer-provided parental leave,

9 4. Deferring retirement Deferring retirement simply involves individuals retiring at a later age, and even small increases in the retirement age will help insulate Australia against the economic effects of ageing. The benefits of deferring retirement to the Australian economy are: increasing superannuation savings through longer accumulation periods; reducing period of life spent in retirement consuming accumulated superannuation savings, thereby decreasing reliance on the Age Pension; and increasing productivity through a higher participation rate. The benefits of deferring retirement on the RSG are illustrated in Figure 5. Each additional year spent working reduces the RSG by approximately $200 billion, translating to higher private retirement savings and a reduced need for the Age Pension. Figure 5: Total Retirement Savings Gap - delaying retirement ($ billion) Source: Rice Warner Actuaries, Longevity Savings Gap Research & Policy Options Policies relating to the preservation age and Age Pension Eligibility age can be designed to increase the retirement age, which currently is 61.4 years Age Pension eligibility age The current eligibility age for the Age Pension in Australia is 65 years and is gradually increasing to 67 years. The increase in the eligibility age is estimated to save around $30,000 per retiree in reduced pension payments. 20 As life expectancies are continually increasing (by 2050, average life expectancy will be 90 years), 21 the eligibility age should be linked to average life expectancy. This will reduce future government spending on the Age Pension and the fiscal gap. 19 The Association of Superannuation Funds of Australia Limited, May 2013, Super system evolution: Achieving consensus through a shared vision, ASFA White Paper Part 4 20 Rice Warner Actuaries, January 2010, Superannuation Adequacy 21 Australian Government Treasury Department, 2010, Intergenerational Report

10 4.2 Preservation age The preservation age is currently between 55 years and 60 years and is being phased to 60 years by The preservation age directly influences a person s decision when to retire as it determines when they can access their superannuation savings. The earlier a person can access their superannuation savings the sooner those savings start being eroded, which can increase reliance on the Age Pension in later years. Therefore, it is important to increase the preservation age as it will: increase the average age of retirement; increase retirement savings; and decrease spending on the Age Pension ASFA and Rice Warner Actuaries propose the preservation age be set at 5 years less than the eligibility age for the Age Pension. Accordingly when the eligibility age for the Age Pension is increased to 67, the preservation age should be increased to 62 and linked to any future increase in the Age Pension eligibility age. Increasing the preservation age will only be effective in addressing the economic effects of ageing if there are employment opportunities for older Australians. Not having the ability to remain employed prior to having access to superannuation will result in a greater portion of retirement savings being held outside superannuation to provide an income during retirement prior to reaching preservation age. 22 This creates inefficiencies in saving for retirement, resulting in lower overall savings. 4.3 Encouraging older Australians to remain in the workforce Policies directly related to the retirement system can be implemented or changed to encourage older Australians to remain in the workforce after reaching preservation age or Age Pension eligibility age. This can be achieved by the following policy changes: removing age limits for all superannuation contributions 23 (subject to a work test); 24 amend the means test for the Age Pension to increase the amount of earned income allowed before reducing Age Pension payments. The earned income test implies a high effective marginal tax rate for those who would sacrifice a higher Age Pension in favour of increased hours of work; 25 and reintroduce a scheme to defer Age Pensions. These changes encourage continuing employment after reaching retirement age and will increase both productivity and retirement savings. 22 Rice Warner Actuaries, January 2010, Superannuation Adequacy 23 From 1 July 2012 the age limit to receiving superannuation guarantee was removed, however age limits on some contribution remain, for example salary sacrifice. 24 Australian Government, 2009, Australia s future tax system Part 2 25 Rice Warner Actuaries, August 2012, Reforming the Age Pension 10

11 5. Post retirement phase Due to increasing life expectancy the retirement system needs to be able to cater for long periods of retirement and have mechanisms to counter longevity risk (the risk of outliving savings). Optimising use of accumulated superannuation savings will benefit the economy through higher living standards for retirees and lower spending on the Age Pension. Policies settings should: encourage use of income streams; ensure superannuation savings are not exhausted in the early phase of retirement; and promote use of annuity products Lump sums or income streams Taking superannuation savings as lump sum payments should be discouraged as it results in savings being consumed in the early phase of retirement and increases reliance on the Age Pension. In contrast, income streams should be encouraged as these provide income for a longer period in retirement. This can be achieved by imposing a limit on tax-free lump sums, with any amount taken above the limit taxed at 15% Annuity products Annuity products include account based pensions, term annuities, lifetime annuities, deferred lifetime annuities and variable annuities. The advantages of annuity products, in particular deferred lifetime annuities, can be seen by looking at a typical drawdown of superannuation savings in Figure 6. By age 86, all superannuation savings are consumed and the individual would be completely reliant on the Age Pension (assuming limited other savings). A 20 year deferred lifetime annuity would commence at age 85 and ensure the individual is able to self fund their retirement or only require a partial Age Pension. Figure 6: Consumption of superannuation savings Source: Rice Warner, Reforming the Age Pension 26 Organisation for Economic Co-operation and Development, 2012, The OECD Roadmap for the Good Design of Defined Contribution Pension Plans 27 Association of Superannuation Funds of Australia Limited, May 2013, Super system evolution: Achieving consensus through a shared vision, ASFA White Paper 11

12 There are various legislative barriers to the development and use of annuity products. 28 Policy settings need to be adjusted to increase the variety and use of these products as they are an effective tool for managing longevity risk. Regulations 1.05 and 1.06 of the Superannuation Industry (Supervision) Regulations (SIS) should be amended to facilitate product innovation in pensions and annuities. 29 ASFA have recommended the SIS regulations be amended to: provide equivalent treatment to post-retirement products offered by life insurance companies and by superannuation funds; set out general requirements for longevity products rather than mirror specific characteristics of existing products; and allow products which provide deferred benefits past normal retirement age to be offered. Changes to APRA regulations covering minimum surrender values of pension and annuity products are required to ensure deferred annuity products are commercially viable. Applying minimum surrender values to deferred annuities results in these products being unattractive from the point of view of a provider and uncompetitive pricing for consumers. 30 The current means test for the Age Pension takes into account the full purchase price of a deferred annuity. 31 To encourage greater use of annuities, this policy should be amended to exclude deferred annuities from the asset test. The Government has taken a step in the right direction and from 1 July 2014 deferred lifetime annuities will have the same concessional tax treatment that superannuation assets supporting income streams receive. 32 The financial services industry will have a key role to play in designing and encouraging the use of annuity products. Actions the industry can take are summarised in Table 1. Table 1: Encouraging us of annuity products Product development Develop products at various price points to ensure widespread take up. Develop wide variety of deferred lifetime annuity products as these offer insurance against longevity at a reasonable cost to the retiree. Encouraging use Raise awareness of annuity products through information brochures sent in the 5 years before preservation age. 28 Howes, M, 23 February 2012, Exploring barriers to Australia s annuities market, Actuaries Institute 29 Actuaries Institute, August 2012, Australia s Longevity Tsunami What Should We Do? 30 Association of Superannuation Funds of Australia Limited, May 2013, Super system evolution: Achieving consensus through a shared vision, ASFA White Paper 31 Association of Superannuation Funds of Australia Limited, May 2013, Super system evolution: Achieving consensus through a shared vision, ASFA White Paper 32 Chartered Accountants Superannuation Bulletin Edition 07, 5 April

13 5.3 Default options in retirement Engagement with superannuation might increase as a person approaches retirement, however a large portion of the population do not have sufficient knowledge of financial products to make informed decisions when selecting retirement products. MySuper has created a system of defaults throughout the accumulation phase that ensure a disengaged person has appropriate investments and a similar system in the retirement phase would ensure appropriate retirement strategies are taken. 33 Under such a system a retiree would take an income stream and only have access to limited lump sums. If their account balance was above a specified threshold they would be required to purchase a lifetime or deferred lifetime annuity. 6. Healthcare and superannuation The Committee for Economic Development of Australia recommends 3% of superannuation be quarantined and used to meet rising health expenditure. 34 As outlined in Figure 4, spending on healthcare is estimated to increase to 7% of GDP by 2050 and become the highest area of government spending. Using a portion of superannuation savings to fund healthcare will shift some of the cost burden back to private consumers reducing government spending and the fiscal gap. Between 1% and 3% of superannuation contributions 35 (capped to a specified amount) should be set aside specifically for healthcare related costs. Implementation of this scheme would require a detailed policy stipulating procedures that are covered under the new funding arrangement and the interaction with private health insurance and Medicare. 7. Engagement Australians have poor engagement with superannuation. 36 A population more engaged with their retirement savings and available strategies will be better prepared for retirement through: increased voluntary contributions; more appropriate investment strategies; and better use of savings in retirement. This will create an environment where Australians take ownership of their retirement, increasing levels of self-funded retirees and reducing expenditure on the Age Pension. 33 Actuaries Institute, August 2012, Australia s Longevity Tsunami What Should We Do? 34 Committee for Economic Development Australia, April 2013, Healthcare: Reform or Ration 35 This would be included in the superannuation guarantee increase to 15% (that is compulsory contributions would not exceed 15%). 36 PwC, 2010, Financial Services Council/PwC CEO Survey 2010 How can our industry help secure the future of all Australians? 13

14 While it is hard to force people to be more engaged, there are measures the government can take that will increase engagement. These include: increasing the frequency of superannuation payments to monthly; 37 change reporting requirement for annual payment summaries so total compulsory SG contributions are shown; and increase financial literacy through programs in high school that are superannuation specific. The superannuation industry can also play a role in increasing engagement and financial literacy in the general public through: simplified product designs; developing scaled advice models; and increasing accessibility to educational material via websites and mobile devices. 8. Conclusion Australia s ageing population will cause significant challenges. Forward looking policies relating to the retirement system are required to address the economic impacts ageing presents. Policies increasing retirement savings and reducing government spending on the Age Pension will help insulate Australia from the future economic impacts of an ageing population. Specifically policy settings should: increase contributions to superannuation and promote self-funded retirement; encourage longer working lives; ensure superannuation savings are used appropriately post retirement; reduce reliance on government funded healthcare; and increase engagement with superannuation. By implementing the necessary policy reforms today, future generations will not be burdened with the economic effects of an ageing population. 37 Australian Government, 2009, Australia s future tax system Part 2 14

15 References Actuaries Institute, August 2012, Australia s Longevity Tsunami What Should We Do? WEB pdf Association of Superannuation Funds of Australia Limited, February 2011, Spotlight on Henry: A comparative analysis of the Henry Recommendations with the proposed increase of the Superannuation Guarantee to 12 per cent Association of Superannuation Funds of Australia Limited, May 2013, Super system evolution: Achieving consensus through a shared vision, ASFA White Paper Association of Superannuation Funds of Australia Limited, May 2013, Super system evolution: Achieving consensus through a shared vision, ASFA White Paper Part 4 Australian Government, 2004, Australia s Demographic Challenges /australias_demographic_challenges.pdf Australian Government, 2009, Australia s future tax system Part 2 Australian Government, Department of Human Services Australian Government Treasury Department, 2010, Intergenerational Report Chartered Accountants Superannuation Bulletin Edition 07, 5 April 2013 Carey, D Coping with Population Ageing in Australia Economics Department Working Papers No 217, OECD 15

16 Clare, R, September 2012, Equity and superannuation the real issues, The Association of Superannuation Funds of Australia Limited Committee for Economic Development Australia, April 2013, Healthcare: Reform or Ration Cooper, B, 19 April 2013, The future of superannuation: Purpose, engagement, importance, American Chamber of Commerce, Sydney Howes, M, 23 February 2012, Exploring barriers to Australia s annuities market, Actuaries Institute pdf Keating, P, Address to ASFA National Conference and Super Expo, 2012, Sydney Mercer Submission to Australian Tax Forum, Organisation for Economic Co-operation and Development, 2012, The OECD Roadmap for the Good Design of Defined Contribution Pension Plans Power, T, 26 May 2013, Double contributions tax for high-income earners, Super Guide Productivity Commission, 2005, Economic Implications of an Ageing Australia, Research Report, Canberra PwC, 2010, Financial Services Council/PwC CEO Survey 2010 How can our industry help secure the future of all Australians Survey-Aug10.pdf 16

17 PwC, July 2011, Financial Services Council/PwC CEO Report Shaping the future of our industry Survey-Aug11.pdf Rice Warner Actuaries, September 2012, Longevity Savings Gap Research & Policy Options %20Report% pdf Rice Warner Actuaries, August 2012, Reforming the Age Pension ension.pdf Rice Warner Actuaries, March 2012, Retirement Savings Gap at 30 June gsgapreport2011.pdf Rice Warner Actuaries, January 2010, Superannuation Adequacy 20-%20January% pdf United Nations, 2002, World Population Ageing Workplace Gender Equality Agency, The how to guide to employer-provided paid parental leave,

ATTACHMENT 10 STATEMENT OF REFORM PRIORITIES, CHALLENGER SUBMISSION TO TAX FORUM, OCTOBER 2011

ATTACHMENT 10 STATEMENT OF REFORM PRIORITIES, CHALLENGER SUBMISSION TO TAX FORUM, OCTOBER 2011 ATTACHMENT 10 STATEMENT OF REFORM PRIORITIES, CHALLENGER SUBMISSION TO TAX FORUM, OCTOBER 2011 Ik A tax plan for our future Stronger. Fairer.Simpler TAX FORD 4-5 October 2011 -qq STATEMENT OF REFORM PRIORITIES

More information

The Institute of Public Accountants. Review of retirement income stream regulation

The Institute of Public Accountants. Review of retirement income stream regulation The Institute of Public Accountants Review of retirement income stream regulation 5 September 2014 Introduction Benefits and Regulation Unit - Personal and Retirement Income Division The Treasury Langton

More information

EXECUTIVE SUMMARY. SUBMISSION 12 March 2014 Final www.industrysuperaustralia.com 2

EXECUTIVE SUMMARY. SUBMISSION 12 March 2014 Final www.industrysuperaustralia.com 2 EXECUTIVE SUMMARY ISA welcomes the opportunity to comment on the Government s Commission of Audit. Australia s superannuation system, which is a key pillar of our retirement income architecture, serves

More information

Actuaries Institute Submission

Actuaries Institute Submission 29 May 2015 Tax White Paper Task Force The Treasury Langton Crescent PARKES ACT 2600 Email: bettertax@treasury.gov.au Dear Sir/Madam Actuaries Institute Submission The Actuaries Institute welcomes the

More information

Wellard Superannuation Better Tax Submission

Wellard Superannuation Better Tax Submission Justification for Superannuation Wellard Superannuation Better Tax Submission It is well documented that Australia has an aging population and consequently less workers will be available to support the

More information

Australia s Future Tax System Preliminary Submission from the Institute of Actuaries of Australia

Australia s Future Tax System Preliminary Submission from the Institute of Actuaries of Australia 21 October 2008 AFTS Secretariat The Treasury Langton Crescent PARKES ACT 2600 Email: AFTS@treasury.gov.au Dear Sir/Madam Purpose Australia s Future Tax System Preliminary Submission from the Institute

More information

Australian superannuation: an equitable and sustainable arrangement in a post crisis world?

Australian superannuation: an equitable and sustainable arrangement in a post crisis world? The Association of Superannuation Funds of Australia Limited ABN 29 002 786 290 ASFA Secretariat PO Box 1485, Sydney NSW 2001 p: 02 9264 9300 (1800 812 798 outside Sydney) f: 1300 926 484 w: www.superannuation.asn.au

More information

Changes to regulatory settings for financial products dealing with longevity

Changes to regulatory settings for financial products dealing with longevity ASFA Research and Resource Centre Changes to regulatory settings for financial products dealing with longevity Ross Clare Director of Research October 2013 ASFA Level 6 66 Clarence Street Sydney NSW 2000

More information

The Benefits of Simplified Superannuation Reform

The Benefits of Simplified Superannuation Reform The Benefits of Simplified Superannuation Reform Prafula Fernandez School of Business Law Curtin University of Technology Abstract This paper considers the recent Superannuation tax reforms in the Tax

More information

A superannuation system that is sustainable, flexible and has integrity

A superannuation system that is sustainable, flexible and has integrity SUPERANNUATION FACT SHEET 1 A superannuation system that is sustainable, flexible and has integrity In the 216-17 Budget, the Government announced a package of reforms designed to improve the sustainability,

More information

Understanding Superannuation

Understanding Superannuation Understanding Superannuation Client Fact Sheet July 2012 Superannuation is an investment vehicle designed to assist Australians save for retirement. The Federal Government encourages saving through superannuation

More information

Australia 2050. Introduction. Who are Older Australians? WINNER 2014 ALUCA TURKSLEGAL SCHOLARSHIP. Question 10

Australia 2050. Introduction. Who are Older Australians? WINNER 2014 ALUCA TURKSLEGAL SCHOLARSHIP. Question 10 WINNER 2014 ALUCA TURKSLEGAL SCHOLARSHIP Australia 2050 Lara Neate BT Financial Group Question 10 According to the treasury, over the next 40 years the proportion of the population over 65 years will double

More information

Superannuation and high account balances

Superannuation and high account balances ASFA Research and Resource Centre Superannuation and high account balances April 2015 Ross Clare Direcr of Research The Association of Superannuation Funds of Australia Limited (ASFA) Level 6, 66 Clarence

More information

Tax discussion paper submission. May 2015 The Association of Superannuation Funds of Australia (ASFA)

Tax discussion paper submission. May 2015 The Association of Superannuation Funds of Australia (ASFA) Tax discussion paper submission May 2015 The Association of Superannuation Funds of Australia (ASFA) Contents Executive summary 3 Key findings 6 Recommendations 7 Objectives of superannuation 8 - Primary

More information

The path to retirement success

The path to retirement success The path to retirement success How important are your investment and spending strategies? In this VIEW, Towers Watson Australia managing director ANDREW BOAL reports on investing for retirement success

More information

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf.

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf. CLIENT FACT SHEET July 2010 Understanding superannuation and superannuation contributions Superannuation is an investment vehicle designed to assist Australians in saving for their retirement. The Government

More information

Retirement Income White Paper Insights Presentation

Retirement Income White Paper Insights Presentation Retirement Income White Paper Insights Presentation Alun Stevens Jack Ding Nathan Bonarius Agenda Background Preliminary projections What are the risks? What are the possible solutions? Purpose of presentation

More information

PENSIONS AT A GLANCE 2011: RETIREMENT-INCOME SYSTEMS IN OECD COUNTRIES AUSTRALIA

PENSIONS AT A GLANCE 2011: RETIREMENT-INCOME SYSTEMS IN OECD COUNTRIES AUSTRALIA PENSIONS AT A GLANCE 2011: RETIREMENT-INCOME SYSTEMS IN OECD COUNTRIES Online Country Profiles, including personal income tax and social security contributions AUSTRALIA Australia: pension system in 2008

More information

A super waste of money

A super waste of money A super waste of money Redesigning super tax concessions April 2015 ISSN 1836-9014 Matt Grudnoff Policy Brief About TAI The Australia Institute is an independent public policy think tank based in Canberra.

More information

Joint Superannuation Accounts

Joint Superannuation Accounts Joint Superannuation Accounts Australian families usually pool their finances and have joint bank accounts for running the household. When we retire, most of us will receive a full or part Age Pension

More information

Is Super always the best option?

Is Super always the best option? Is Super always the best option? Aaron Bruhn, Ruchen Han, Tim Higgins NOTE: This is work is preliminary and the contents and results may change in future drafts Australian National University This presentation

More information

1. INTRODUCTION 2. EXECUTIVE SUMMARY 3. SUBMISSIONS. Loretta DeSourdy Head of Regulatory Affairs Westpac New Zealand Limited PO Box 691 Wellington

1. INTRODUCTION 2. EXECUTIVE SUMMARY 3. SUBMISSIONS. Loretta DeSourdy Head of Regulatory Affairs Westpac New Zealand Limited PO Box 691 Wellington BT FUNDS MANAGEMENT (NZ) LIMITED AND WESTPAC NEW ZEALAND LIMITED Submission to the Commission for Financial Literacy and Retirement Income on the 2013 Review of Retirement Income Policy 10 June 2013 Mariëtte

More information

Consequently, this submission outlines QSuper s thoughts on the two biggest risks faced by members:

Consequently, this submission outlines QSuper s thoughts on the two biggest risks faced by members: 1. Introduction QSuper welcomes the opportunity to provide a submission regarding the Financial System Inquiry Interim Report, July 2014. The Inquiry provides a platform to further focus the system and

More information

8. Superannuation. Contents. Summary

8. Superannuation. Contents. Summary 8. Superannuation Contents Summary 157 Superannuation: an overview 158 The superannuation system 158 Assessment of superannuation 160 Reviews of superannuation 162 Superannuation contributions 162 Types

More information

The Cypriot Pension System: Adequacy and Sustainability

The Cypriot Pension System: Adequacy and Sustainability Cyprus Economic Policy Review, Vol. 6, No. 2, pp. 49-58 (2012) 1450-4561 49 The Cypriot Pension System: Adequacy and Sustainability Philippos Mannaris Aon Hewitt Abstract The fundamental objective of pension

More information

Super and your retirement. Page 1

Super and your retirement. Page 1 Super and your retirement Page 1 When we think about our retirement, we naturally imagine quite an ideal scenario. Living an active life in comfort and style. However the truth is, unless we make decisions

More information

BANK OF PAPUA NEW GUINEA SUBMISSION TO THE TAX REVIEW COMMITTEE ON TAXATION IN SUPERANNUATION AND LIFE INSURANCE

BANK OF PAPUA NEW GUINEA SUBMISSION TO THE TAX REVIEW COMMITTEE ON TAXATION IN SUPERANNUATION AND LIFE INSURANCE BANK OF PAPUA NEW GUINEA SUBMISSION TO THE TAX REVIEW COMMITTEE ON TAXATION IN 9 MAY 2014 1) INTRODUCTION This paper aims to bring to the attention of the Taxation Review Committee (TRC) issues relating

More information

Australia: Retirement Income and Annuities Markets. Contractual Savings Conference April 2008 Greg Brunner

Australia: Retirement Income and Annuities Markets. Contractual Savings Conference April 2008 Greg Brunner Australia: Retirement Income and Annuities Markets Contractual Savings Conference April 2008 Greg Brunner Pension system Age pension in place since 1908, funded on a payas-you go basis Means testing. The

More information

2016/17 Budget. 1. Effective Budget Night 7.30pm (AEST) 3 May 2016. 1.1 New lifetime cap for non-concessional superannuation contributions

2016/17 Budget. 1. Effective Budget Night 7.30pm (AEST) 3 May 2016. 1.1 New lifetime cap for non-concessional superannuation contributions 2016/17 Budget Superannuation reform changes 1. Effective Budget Night 7.30pm (AEST) 3 May 2016 1.1 New lifetime cap for non-concessional superannuation contributions The government will introduce a $500,000

More information

Age Pension & Retirement Incomes. Catherine Nance PricewaterhouseCoopers 2008

Age Pension & Retirement Incomes. Catherine Nance PricewaterhouseCoopers 2008 Age Pension & Retirement Incomes Catherine Nance PricewaterhouseCoopers 2008 Age Pension & Retirement Incomes Where do we want to be Where are we now Solutions Policy options Capital market options Australia

More information

Contributing the Family Home to Super

Contributing the Family Home to Super Contributing the Family Home to Super An innovative proposal designed to assist with the accommodation and income needs of older Australians wishing to remain in their own homes. Abstract There has been

More information

REVIEW OF RETIREMENT INCOME STREAM REGULATION

REVIEW OF RETIREMENT INCOME STREAM REGULATION 10 September 2014 General Manager Personal and Retirement Income Division The Treasury Langton Crescent PARKES ACT 2600 Email: paul.tilley@treasury.gov.au Dear Mr Tilley, REVIEW OF RETIREMENT INCOME STREAM

More information

If you work in Australia, your employer may have to contribute to a superannuation fund for you under the Superannuation Guarantee system if you:

If you work in Australia, your employer may have to contribute to a superannuation fund for you under the Superannuation Guarantee system if you: Superannuation is a tax advantaged way of saving for retirement and makes up two of the three pillars of the Government s retirement income policy. The three pillars are: A Government funded means-tested

More information

MEETING THE RETIREMENT INCOME CHALLENGE APRIL 2013

MEETING THE RETIREMENT INCOME CHALLENGE APRIL 2013 MEETING THE RETIREMENT INCOME CHALLENGE APRIL 2013 INTRODUCTION The Australian retirement system is generally regarded globally as being well advanced, ranking third in the 2012 Mercer Melbourne Global

More information

Review into the Governance, Efficiency, Structure and Operation of Australia's Superannuation System

Review into the Governance, Efficiency, Structure and Operation of Australia's Superannuation System Review into the Governance, Efficiency, Structure and Operation of Australia's Superannuation System ACTU submission on Structure 26 February 2010 D No 01/2010 Introduction The review panel s papers on

More information

SUPPLEMENTAL Submission to the TAX WHITE PAPER TASK FORCE

SUPPLEMENTAL Submission to the TAX WHITE PAPER TASK FORCE SUPPLEMENTAL Submission to the TAX WHITE PAPER TASK FORCE 24 July 2015 Disclaimer and Information This submission uses results from the Pension Sustainability Computer Model based upon certain assumptions.

More information

SUMMARY OF RATES AND THRESHOLDS 2015/16

SUMMARY OF RATES AND THRESHOLDS 2015/16 SUMMARY OF RATES AND THRESHOLDS 2015/16 CONTENTS Superannuation rates and thresholds Concessional contributions Non-concessional contributions Capital Gains Tax (CGT) cap amount Untaxed plan cap amount

More information

Financial System Inquiry

Financial System Inquiry August 2014 Financial System Inquiry SPAA Response to the FSI Interim Report. L1, 366 King William St ADELAIDE SA 5000 T: 08 8205 1900 E: submissions@spaa.asn.au W: www.spaa.asn.au About SPAA SPAA is the

More information

Retirement made easy. Helping you achieve your retirement goals. rest.com.au/restpension 1300 305 778

Retirement made easy. Helping you achieve your retirement goals. rest.com.au/restpension 1300 305 778 Retirement made easy Helping you achieve your retirement goals rest.com.au/restpension 1300 305 778 Helping you achieve your retirement goals As you near retirement you probably have a number of questions

More information

HOME EQUITY RELEASE THE FOURTH PILLAR OF RETIREMENT FUNDING. Christine Brownfield

HOME EQUITY RELEASE THE FOURTH PILLAR OF RETIREMENT FUNDING. Christine Brownfield HOME EQUITY RELEASE THE FOURTH PILLAR OF RETIREMENT FUNDING Christine Brownfield 20 th November 2014 Our Retirement Income System The Age Pension Compulsory Superannuation Voluntary Superannuation + Other

More information

AustChoice Super general reference guide (ACH.02)

AustChoice Super general reference guide (ACH.02) AustChoice Super general reference guide (ACH.02) Issued: 28 May 2015 This guide contains important information not included in the AustChoice Super PDS. We recommend you read this entire guide. The information

More information

Superannuation 2010 2011

Superannuation 2010 2011 RESEARCH PAPER NO. 3, 2010 11 9 September 2010 Superannuation 2010 2011 Leslie Nielson Economics Section Executive summary This paper, updated for the 2010 11 financial year, is designed to provide readers

More information

Questions and Answers (Q&A) 1 3 rd December 2015 Tax harmonisation and retirement reforms

Questions and Answers (Q&A) 1 3 rd December 2015 Tax harmonisation and retirement reforms Questions and Answers (Q&A) 1 3 rd December 2015 Tax harmonisation and retirement reforms 1. What are the changes that will come into effect on 1 March 2016? The Taxation Laws Amendment Act, 2013 will

More information

Planning for retirement

Planning for retirement Planning for retirement 1 Disclaimer This presentation contains general advice current as at April 2016 and has been prepared without taking account of your objectives, financial situation or needs. Before

More information

State Super retirement FuND

State Super retirement FuND State Super retirement FuND Additional Information Booklet Date of Issue 20 January 2015 State Super Financial Services Australia Limited ABN 86 003 742 756 Australian Financial Services Licence No. 238430

More information

ASFA Research and Resource Centre

ASFA Research and Resource Centre ASFA Research and Resource Centre Employer contributions to superannuation in excess of 9% of wages Results of survey and other research Ross Clare Director of Research March 2010 Association of Superannuation

More information

STATEMENT FROM THE NATIONAL REFORM SUMMIT

STATEMENT FROM THE NATIONAL REFORM SUMMIT STATEMENT FROM THE NATIONAL REFORM SUMMIT Australia is a wealthy country that can have an even more prosperous future shared by everyone. We believe in sustainable economic growth and the creation of high-quality

More information

Structuring & Tax. Ensuring your plans for your super become a reality. By Ben Andreou Partner Head of Structuring & Tax

Structuring & Tax. Ensuring your plans for your super become a reality. By Ben Andreou Partner Head of Structuring & Tax Structuring & Tax Ensuring your plans for your super become a reality By Ben Andreou Partner Head of Structuring & Tax December 2015 Table of Contents Page Why should you read this paper?... 3 Background...

More information

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:-

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- 1. Executive Summary For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- Ø A place to live, with security of tenure.

More information

Smart End of Financial Year Strategies

Smart End of Financial Year Strategies Level 7,34 Charles St Parramatta Parramatt NSW 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegie.com.au Build Guide Protect Manage Wealth Smart End of Financial

More information

Getting the best out of your superannuation savings

Getting the best out of your superannuation savings Booklet 1 Getting the best out of your superannuation savings MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Saving through super 08 How a super fund works 09 How

More information

Telstra Super Personal Plus

Telstra Super Personal Plus 01/ 17 NOVEMBER 2015 PRODUCT DISCLOSURE STATEMENT Telstra Super Personal Plus Making the most of your future Contents 01 About Telstra Super and Telstra Super Personal Plus 02 02 How super works 02 03

More information

2014/15 Key Superannuation Rates and Thresholds

2014/15 Key Superannuation Rates and Thresholds 2014/15 Key Superannuation Rates and Thresholds These are the key rates and thresholds that apply in relation to superannuation contributions and benefits, superannuation guarantee and co-contributions.

More information

Retirement made easy. Helping you achieve your retirement goals. rest.com.au/restpension 1300 305 778

Retirement made easy. Helping you achieve your retirement goals. rest.com.au/restpension 1300 305 778 Retirement made easy Helping you achieve your retirement goals rest.com.au/restpension 1300 305 778 Helping you achieve your retirement goals As you near retirement you probably have a number of questions

More information

NEW ZEALAND S RETIREMENT INCOMES CHALLENGE MARCH 2012

NEW ZEALAND S RETIREMENT INCOMES CHALLENGE MARCH 2012 SECURING SECURINGRETIREMENT RETIREMENTINCOMES INCOMES NEW ZEALAND S RETIREMENT INCOMES CHALLENGE MARCH 2012 CONTENTS 1 New Zealand s Retirement Incomes Challenge 2 Could NZ be the next Greece? Learning

More information

Retirement incomes. Aisur. Submission to the Tax White Paper Task Force. July 2015

Retirement incomes. Aisur. Submission to the Tax White Paper Task Force. July 2015 Retirement incomes Submission to the Tax White Paper Task Force July 2015 Executive summary 2015 1 Background The Australian retirement income system comprises three pillars: a publicly funded means tested

More information

FEDERAL BUDGET 2009 SUMMARY

FEDERAL BUDGET 2009 SUMMARY FEDERAL BUDGET 2009 SUMMARY 13 May 2009 As widely expected, last nightʼs Federal Budget contained a number of proposals that will affect clients. Importantly, the proposals will require passage of legislation

More information

SMSF Facts Sheet. July 2015

SMSF Facts Sheet. July 2015 SMSF Facts Sheet July 2015 Key Superannuation Rates and Thresholds - 2015/16 Contributions The tables below contain the amounts of concessional and non-concessional contributions you may make to your superannuation

More information

Building super on a fair foundation: Reform of the taxation of superannuation contributions

Building super on a fair foundation: Reform of the taxation of superannuation contributions Building super on a fair foundation: Reform of the taxation of superannuation contributions ACOSS Paper 185 February 2012 CONTACT Australian Council of Social Service Locked Bag 4777, Strawberry Hills,

More information

An update on the level and distribution of retirement savings

An update on the level and distribution of retirement savings ASFA Research and Resource Centre An update on the level and distribution of retirement savings Ross Clare Director of Research March 2014 The Association of Superannuation Funds of Australia Limited (ASFA)

More information

Summary of Social Security and Private Employee Benefits AUSTRALIA

Summary of Social Security and Private Employee Benefits AUSTRALIA Private Employee Benefits AUSTRALIA 2012 Your Local Link to IGP in AUSTRALIA: AMP Life Limited Established in 1849 as a mutual company, AMP has grown to be one of the largest companies in Australasia,

More information

2 Voluntary retirement module specification

2 Voluntary retirement module specification 2 Voluntary retirement module specification As part of its research on Superannuation Policy for Post-Retirement the Commission has developed a model referred to as the Productivity Commission Retirement

More information

SMSF Solutions for Advisers & Accountants.

SMSF Solutions for Advisers & Accountants. SMSF Solutions for Advisers & Accountants. 1 November 2015 www.multiport.com.au Multiport Pty Ltd ABN 76 097 695 988 AFS LICENCE NO: 291195 Contents Taking the hassle out of SMSF administration and compliance

More information

Not everyone will have the

Not everyone will have the Mathematical and modelling aspects of retirement planning Retirement has become a numbers game on many levels, but as CHRIS DEELEY points out, retirement planning also requires mathematical rigour. Not

More information

SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES

SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES Superannuation Introducing Salary Packaging Salary packaging has been made available to all staff of the University through the Enterprise Agreement process.

More information

Supplementary Submission on Retirement Income to the Tax Review. August 2015

Supplementary Submission on Retirement Income to the Tax Review. August 2015 Supplementary Submission on Retirement Income to the Tax Review August 2015 1 Introduction National Seniors welcomes the opportunity to provide a brief supplementary paper on Australia s retirement income

More information

Thank you for your invitation to comment on proposals announced in the recent Federal budget to simplify and streamline superannuation.

Thank you for your invitation to comment on proposals announced in the recent Federal budget to simplify and streamline superannuation. General Manager Superannuation, Retirement and Savings Division The Treasury Langton Crescent PARKES ACT 2600 Dear Sir/Madam A PLAN TO SIMPLIFY AND STREAMLINE SUPERANNUATION Thank you for your invitation

More information

Introducing a Retirement Benefit Target

Introducing a Retirement Benefit Target Introducing a Retirement Benefit Target Brnic Van Wyk, FIAA FIA FASSA * QSuper Limited, Brisbane, Australia Tel: +617 3239 1819 Email: brnic.vanwyk@qsuper.qld.gov.au 29 February 2012 Abstract The true

More information

Australian superannuation funds should be exempt from FATCA withholding obligations on this basis.

Australian superannuation funds should be exempt from FATCA withholding obligations on this basis. 7 May 2012 CC:PA:LPD:PR (REG-121647-10) Room 5205 Internal Revenue Service PO Box 7604 Ben Franklin Station Washington D.C. 20044 United States of America Reg-121647-10: Regulations Relating to Information

More information

Tax White Paper Supplementary Submission on Retirement Incomes. Minimum Drawdown Rules. Category A. 24 July 2015

Tax White Paper Supplementary Submission on Retirement Incomes. Minimum Drawdown Rules. Category A. 24 July 2015 Sydney Level 15, 255 Pitt Street Sydney NSW 2000 Australia GPO Box 3698 Sydney NSW 2001 www.challenger.com.au 24 July 2015 Telephone 02 9994 7000 Facsimile 02 9994 7777 Tax White Paper Task Force The Treasury

More information

THE SOCIETY OF ACTUARIES IN IRELAND. Position Paper on the Taxation of Private Pension Provision

THE SOCIETY OF ACTUARIES IN IRELAND. Position Paper on the Taxation of Private Pension Provision THE SOCIETY OF ACTUARIES IN IRELAND Position Paper on the Taxation of Private Pension Provision November 2011 Position Paper on the Taxation of Private Pension Provision 1 Purpose The primary purpose of

More information

Superannuation adequacy with voluntary contributions: a comparison of living standards

Superannuation adequacy with voluntary contributions: a comparison of living standards Superannuation adequacy with voluntary contributions: a comparison of living standards Marcia Keegan, Gabriela D Souza and Rebecca Cassells National Centre for Social and Economic Modelling, University

More information

Submission to the Financial System Inquiry. August 2014. Homesafe Solutions Pty Ltd

Submission to the Financial System Inquiry. August 2014. Homesafe Solutions Pty Ltd Submission to the Financial System Inquiry August 2014 Homesafe Solutions Pty Ltd Executive Summary Homesafe Solutions Pty Ltd welcomes the inclusion of access to equity in the home in the Interim Report

More information

General reference guide

General reference guide General reference guide (TPS.01) Issued: 1 July 2015 The Portfolio Service Super Essentials The Portfolio Service Superannuation Plan The Portfolio Service Retirement Income Plan This guide contains important

More information

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund.

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund. Tax and super Issue Date: 1 July 2015 SUP E R ANNUATION The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each dated 1 July 2015. You

More information

Lump Sum My Retirement

Lump Sum My Retirement Lump Sum My Retirement General advice warning The schemes administered by Super SA are exempt public sector schemes and therefore we are not required to hold an Australian Financial Services licence to

More information

Self Managed Super Funds Take charge

Self Managed Super Funds Take charge Self Managed Super Funds Take charge Gain control of your financial future with a Self-Managed Super Fund (SMSF) About Markiewicz & Co. Markiewicz & Co. is one of Australia s leading full service investment

More information

Contributing to your super

Contributing to your super SUP E R ANNUATION Contributing to your super GESB Super and West State Super ISSUE DATE: 1 July 2015 PREPARATION DATE: 26 June 2015 Government Employees Superannuation Board ABN 43 418 292 917 Contents

More information

PENSIONS POLICY INSTITUTE. Tax relief for pension saving in the UK

PENSIONS POLICY INSTITUTE. Tax relief for pension saving in the UK Tax relief for pension saving in the UK This report is sponsored by Age UK, the Institute and Faculty of Actuaries, Partnership and the TUC. The PPI is grateful for the support of the following sponsors

More information

Submission to the Tax White Paper Taskforce review of Australia s retirement income system

Submission to the Tax White Paper Taskforce review of Australia s retirement income system 24 July 2015 Submission to the Tax White Paper Taskforce review of Australia s retirement income system About the NWRN The NWRN is the peak body for community legal services which provide legal advice

More information

Evolving Superannuation Industry Trends

Evolving Superannuation Industry Trends Evolving Superannuation Industry Trends November 2012 kpmg.com.au 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International

More information

An Ageing Australia: Preparing for the Future

An Ageing Australia: Preparing for the Future An Ageing Australia: Preparing for the Future Mike Woods Deputy Chairman, Productivity Commission COTA National Policy Forum Productivity Commission million 90% confidence interval 95% confidence interval

More information

TAX & SUPERANNUATION:

TAX & SUPERANNUATION: SECURING RETIREMENT INCOMES TAX & SUPERANNUATION: BENCHMARKING AUSTRALIA AGAINST THE WORLD S BEST RETIREMENT SAVINGS SYSTEMS FEBRUARY 2013 CONTENTS 1 Executive Summary 2 Introduction 3 The variety of retirement

More information

Superannuation and the economy. June 2015 The Association of Superannuation Funds of Australia (ASFA)

Superannuation and the economy. June 2015 The Association of Superannuation Funds of Australia (ASFA) Superannuation and the economy June 2015 The Association of Superannuation Funds of Australia (ASFA) The Association of Superannuation Funds of Australia Limited (ASFA) Level 6, 66 Clarence Street Sydney

More information

Taxation measures. Medicare low income thresholds. Changes to tax rates for non-residents. Changes to the net medical expenses tax offset

Taxation measures. Medicare low income thresholds. Changes to tax rates for non-residents. Changes to the net medical expenses tax offset 2012-2013 Federal Budget Report May 2012 This year s Federal Budget was returned to surplus while ensuring families and small business share in the benefits of the resource boom. Cor sae por restiam adis

More information

Smart strategies for maximising retirement income

Smart strategies for maximising retirement income Smart strategies for maximising retirement income 2010 Why you need to create a life-long income Australia has one of the highest life expectancies in the world and the average retirement length has increased

More information

Home Ownership and Superannuation White Paper

Home Ownership and Superannuation White Paper Home Ownership and Superannuation White Paper This paper contains general advice about our superannuation products and has been prepared without taking account of your objectives, financial situation or

More information

Key Superannuation Rates and Thresholds

Key Superannuation Rates and Thresholds Key Superannuation Rates and Thresholds Concessional contributions cap Concessional contributions consist of: 1. Employer contributions including salary sacrifice contributions 2. Personal contributions

More information

Australia s retirement provision: the decumulation challenge. John Piggott Director CEPAR

Australia s retirement provision: the decumulation challenge. John Piggott Director CEPAR Australia s retirement provision: the decumulation challenge John Piggott Director CEPAR Outline of talk Introduction to Australian retirement policy Issues in Longevity Current retirement products in

More information

Superannuation tax concessions and the age pension: a principled approach to savings taxation

Superannuation tax concessions and the age pension: a principled approach to savings taxation Crawford School of Public Policy TTPI Tax and Transfer Policy Institute Superannuation tax concessions and the age pension: a principled approach to savings taxation TTPI - Working Paper 7/2015 November

More information

The sooner you start thinking about growing your super, the better. But it s never too late.

The sooner you start thinking about growing your super, the better. But it s never too late. > Get calculating! If you d like to see the effect that personal contributions may have on your final entitlement, access the Super SA Benefit Projector on the Super SA website www.supersa.sa.gov.au. The

More information

FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015

FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015 FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015 The OECD argues in favour of complementary private pension savings to boost overall saving for retirement. Financial incentives may be

More information

OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016

OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016 OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016 The OECD argues in favour of complementary private pension savings to boost overall saving for retirement. Financial

More information

SUPERANNUATION SUPERANNUATION AN OVERVIEW. Paper 026-001 CONTENTS

SUPERANNUATION SUPERANNUATION AN OVERVIEW. Paper 026-001 CONTENTS SUPERANNUATION SUPERANNUATION AN OVERVIEW CONTENTS Page 1. What Is Superannuation?... 2 2. A History Of Superannuation In Australia... 2 3. Why Implement The Superannuation Guarantee Scheme?... 2 4. How

More information

Contents. What is an intergenerational report?

Contents. What is an intergenerational report? What is an intergenerational report? An intergenerational report assesses the long term sustainability of Commonwealth finances. It examines the impact of current policies and trends, including population

More information

your making your retirement goals a reality Retirement Guide

your making your retirement goals a reality Retirement Guide making your retirement goals a reality your Retirement Guide CARE Super Pty Ltd (Trustee) ABN 91 006 670 060 AFSL 235226 CARE Super (Fund) ABN 98 172 275 725 your retirement is in your hands It can be

More information

10. A SECURE RETIREMENT: INCOME, SUPERANNUATION & WORKERS CAPITAL

10. A SECURE RETIREMENT: INCOME, SUPERANNUATION & WORKERS CAPITAL POLICY A FAIR GO FOR ALL 10. A SECURE RETIREMENT: INCOME, SUPERANNUATION & WORKERS CAPITAL INTRODUCTION 1. Congress applauds the outstanding role played by Australian unions over four decades in helping

More information

Understanding retirement income Version 5.0

Understanding retirement income Version 5.0 Understanding retirement income Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to understanding retirement.

More information

Super taxes, caps, payments, thresholds and rebates

Super taxes, caps, payments, thresholds and rebates Fact Sheet Super taxes, caps, payments, thresholds and rebates This fact sheet provides a useful one-stop reference guide to the tax rates, caps, thresholds and rebates that apply or are related to superannuation

More information

An explanation of social assistance, pension schemes, insurance schemes and similar concepts

An explanation of social assistance, pension schemes, insurance schemes and similar concepts From: OECD Framework for Statistics on the Distribution of Household Income, Consumption and Wealth Access the complete publication at: http://dx.doi.org/10.1787/9789264194830-en An explanation of social

More information