Superannuation: What is the Transition to Retirement program? Are changes going to affect you?
8 years, 10 months ago

Superannuation: What is the Transition to Retirement program? Are changes going to affect you?

ABC  

When the Federal Government released its budget, it assured voters that planned changes to superannuation would affect only the top 4 per cent of earners. However, from July next year, under the Government's proposed changes, people using the scheme would have earnings within the super fund taxed at 15 per cent. Executive director of the conservative think tank Institute of Public Affairs John Roskam said the Government's messaging was causing problems: "By simply saying only 4 per cent of people are affected, that only the rich are affected, they have really compounded this problem," he said He said teachers and nurses were two of the key demographics that could be affected by the changes. In the budget, the Government announced a lowering of the income threshold at which the 30 per cent tax rate kicks in on superannuation contributions from $300,000 to $250,000, which matches one of Labor's policy commitments. Labor has promised it would raise $14 billion in a decade by putting a 15 per cent tax on super earnings more than $75,000 a year.

Government Labor Medicare Tax Budget Election Opposition Coalition Changes Income Senate Cost Billion This Election Cent Parliament Affect Super 25 Per Cent Three Years Greens Negative Gearing Concessional Loans Superannuation Gonski Nbn Malcolm Turnbull Fwc Fttn Lateline Penalty Rates Sunday Penalty Rates Ftb Part A Super Earnings  billion  cost  super  labor  cent  program  superannuation  election  going  affect  income  coalition  retirement  tax  budget  transition  changes

History of this topic

Anthony Albanese launches '$10k cash for apprentices' policy at National Press Club — as it happened
2 months, 1 week ago

Anthony Albanese launches '$10k cash for apprentices' policy at National Press Club — as it happened

ABC  

Before I get to Phil Coorey's question, let me take you on a trip down memory lane. Labor went to the last election with just one tax policy: reforms to close loopholes used by multinational corporations to avoid paying tax. But in government, it pivoted, announcing it would increase the tax rate on superannuation accounts over $3 million. He says …

Labor plots a new way of taxing your retirement savings after millions of Aussies enjoyed a 'super surge'
3 months ago

Labor plots a new way of taxing your retirement savings after millions of Aussies enjoyed a 'super surge'

Daily Mail  

Super balances have had the best year since 2021 as Labor plots a new way of increasing taxes on retirement savings. Balanced super options, oriented towards growth assets, enjoyed a 11.5 per cent median boost in 2024, new SuperRatings data showed. This was the best year since 2021 when Reserve Bank interest rates were still at a record-low of 0.1 …

What the super tax debate means for budget repair and a government trying to pay its bills
2 years ago

What the super tax debate means for budget repair and a government trying to pay its bills

ABC  

What's the definition of reform? To put some numbers on it — in an average year with a 5 per cent return — they'll pay around $9,750 in tax on income of $150,000. If you have retirement savings beyond that $3 million cap, you'll pay tax at just 30 per cent which, again, is substantially lower than many working Australians …

Some of Australia's biggest super account holders support the government's plan to make them pay more tax
2 years, 1 month ago

Some of Australia's biggest super account holders support the government's plan to make them pay more tax

ABC  

Gary Belgre knows few Australians are as lucky as him to have more than $3 million in superannuation. Labor's retirement tax plan follows a template set by Scott Morrison Photo shows Jim Chalmers stands behind a podium on the left and Anthony Albanese behind one on the right in a courtyard Jim Chalmers isn't the first treasurer to act on …

Labor's move to define super's 'objective' should leave room for debate on its use for housing
2 years, 1 month ago

Labor's move to define super's 'objective' should leave room for debate on its use for housing

ABC  

The Albanese government is prodding the superannuation bear, which can be a dangerous beast when stirred. 'Dutton-proofing' the super system The government's plan to legislate the "objective" of superannuation has implications for the Coalition. Photo shows Chalmers calls for crackdown on early super access Political ideology and business interests have long guided decision-making on what happens to people's superannuation. The …

Changes to superannuation are being floated by the federal government. Here's what's being considered
2 years, 1 month ago

Changes to superannuation are being floated by the federal government. Here's what's being considered

ABC  

The federal government has made it clear it wants to have a conversation about changing our superannuation system to potentially save the budget tens of billions of dollars. "Those members aged 65 or older with a total superannuation balance as at 1 July 2023 in excess of $5 million … should be required to withdraw the excess out of superannuation …

Labor wants to revamp superannuation, but does it have workers' interests in mind?
2 years, 1 month ago

Labor wants to revamp superannuation, but does it have workers' interests in mind?

ABC  

In every debate about superannuation, there's a reality that is often forgotten. You could lose hundreds of thousands of dollars if you stay in a dud fund Photo shows Retirement nest egg The "name and shame" list of super funds is designed to make Australians more aware. "Right now, we're on track to spend more on super tax concessions than …

Superannuation boost reveals loopholes and power imbalance in wages debate
3 years, 9 months ago

Superannuation boost reveals loopholes and power imbalance in wages debate

ABC  

The debate over superannuation is now officially dead. After almost a year of deliberations and debate, with Prime Minister Scott Morrison angling to cap superannuation contributions at 9.5 per cent, the federal government finally relented in April. When Paul Keating established the compulsory superannuation system in the late 1980s, the idea was that workers would forego future wage hikes in …

Australia's top economists oppose the next increases in compulsory super: new poll
4 years, 7 months ago

Australia's top economists oppose the next increases in compulsory super: new poll

ABC  

The five consecutive hikes in compulsory super contributions due to start next July should be deferred or abandoned in the view of the overwhelming majority of the leading Australian economists surveyed by the Economic Society of Australia and The Conversation. But ahead of the most recent increase in compulsory super, from 9 per cent of salaries to 9.5 per cent …

Contributions to your super are set to get a boost next year — but coronavirus could send the plan off the rails
4 years, 7 months ago

Contributions to your super are set to get a boost next year — but coronavirus could send the plan off the rails

ABC  

For nearly 30 years, Australian governments have been working to get the percentage of your wage that employers must contribute to your retirement savings to 12 per cent. Here's what that looks like: Period General super guarantee July 1, 2002 - June 30, 2013 9 July 1, 2013 - June 30, 2014 9.25 July 1, 2014 - June 30, 2021 …

Your pension payment could halve in July because of COVID-19 changes to superannuation
4 years, 9 months ago

Your pension payment could halve in July because of COVID-19 changes to superannuation

ABC  

When a letter arrived in her mailbox recently from her superannuation fund, retiree Sandra Luntz was at a loss as to what it all meant. Key points: Government changes to superannuation rules, as part of the COVID-19 stimulus package, were announced in March Reduced minimum drawdown rates will mean some retirees could have their superannuation pension payments reduced by half …

Five questions about superannuation the Federal Government's new inquiry must ask
5 years, 6 months ago

Five questions about superannuation the Federal Government's new inquiry must ask

ABC  

The government's new retirement incomes review will need to work quickly. In 2014, more than 20 years after compulsory super began, the Murray Financial System Review asked the government to set a clear objective for it, and two years later the government came up with one, enshrined in a bill entitled the Superannuation Bill 2016. The bill lapsed, but the …

Increasing compulsory super will strip $20b from workers' wages, Grattan Institute says
5 years, 11 months ago

Increasing compulsory super will strip $20b from workers' wages, Grattan Institute says

ABC  

A legislated plan to increase compulsory superannuation contributions from 9.5 per cent to 12 per cent by 2025 would strip up to $20 billion from workers' wages each year, or nearly 1 per cent of gross domestic product, according to the Grattan Institute. But modelling from the Grattan Institute suggests by the time it was fully implemented in 2025-26, a …

Most Australians will retire with enough savings except older women renting, says Grattan Institute
6 years, 4 months ago

Most Australians will retire with enough savings except older women renting, says Grattan Institute

ABC  

If you are a woman in retirement who is renting in Sydney or Melbourne, you likely won't have enough savings to live comfortably, according to a new report by the Grattan Institute. "The three key flaws in the modelling are: assuming everyone can top up their super with extra voluntary contributions resulting in lifetime contributions that could be up to …

Raising the retirement age would fix the budget, but would it be fair?
6 years, 6 months ago

Raising the retirement age would fix the budget, but would it be fair?

ABC  

Work into your 70s and then sell your house — or suck out its value through a reverse mortgage — before you can qualify for a modest aged pension. "Raising the pension and superannuation eligibility ages to 70 would yield $12 billion a year for the budget, mostly in the form of increased income tax revenue, while producing a lift …

Budget 2018: Find out how much the tax cut will save you next year, and beyond
6 years, 10 months ago

Budget 2018: Find out how much the tax cut will save you next year, and beyond

ABC  

The Government has introduced a massive seven-year personal tax cut package that will mean millions of Australians benefit from next year's proposed changes. From July next year, people earning between $87,000 and $90,000 will move back into the lower tax bracket and pay 32.5 per cent instead of 37 per cent in tax. In 2022, the top threshold of the …

Millions of Australians missing out on superannuation, amid rise of gig economy
7 years ago

Millions of Australians missing out on superannuation, amid rise of gig economy

ABC  

Millions of workers are missing out on superannuation or failing to gain enough superannuation to secure a decent retirement, sparking calls for the entire system to be overhauled. The coverage of the superannuation system is being undermined by: The rise of the gig economy, with a growing number of workers not classed as employees and ineligible for compulsory employer-funded superannuation; …

How the proposed superannuation changes will affect you (and the Government)
7 years, 5 months ago

How the proposed superannuation changes will affect you (and the Government)

ABC  

There could be some big changes to superannuation on the way. In a nutshell the super changes will: Ensure all workers can choose their own funds, regardless of enterprise agreements Further disclose how members' money is spent through new reporting standards And, controversially, ensure at least a third of directors in Industry Super boardrooms are "independent" Why is it so …

Superannuation: Women on track to retire with half as much as men, study finds
7 years, 8 months ago

Superannuation: Women on track to retire with half as much as men, study finds

ABC  

Australian women retire with less than half the amount of superannuation than men, and the system was designed to benefit working fathers when it launched 25 years ago, according to a major study. How to fix the problem: Track super balances to identify when to intervene Provide 'accumulation pathways' to those falling behind Inclusion of superannuation payments in carer payments …

Employers 'short-changing' Australian workers by withholding superannuation payments, report says
8 years, 3 months ago

Employers 'short-changing' Australian workers by withholding superannuation payments, report says

ABC  

About a third of Australian workers are being ripped off by rogue employers who are holding back some or all of their superannuation entitlements, according to a report out today. Key points: Study suggests average worker short-changed $1,489 of super in 2013-2014 Nearly a third of workers eligible for super guarantee being short-changed: Industry Super Australia CEO Small to medium-sized …

The superannuation myth: Why it's a mistake to increase contributions to 12pc of earnings
8 years, 6 months ago

The superannuation myth: Why it's a mistake to increase contributions to 12pc of earnings

ABC  

So much of the national conversation about superannuation simply assumes that "savings for retirement" is synonymous with "superannuation savings". Even ASIC's retirement savings calculator — which enables people to estimate their future retirement income — presumes that superannuation and the Age Pension alone will fund retirement. Even younger households save a lot outside of super When confronted with facts about …

Superannuation: Latest changes favour the rich, but that's not the big picture
8 years, 6 months ago

Superannuation: Latest changes favour the rich, but that's not the big picture

ABC  

The aim of the superannuation system is to get as many people as possible to be self-sufficient in retirement, and on that score the Government is heading in the right direction. Whereas the Low Income Superannuation Tax Offset, also announced in the budget, affects well over three million people. One of the central policies is the aforementioned Low Income Tax …

Superannuation changes show Federal Government has 'caved in to the super rich'
8 years, 6 months ago

Superannuation changes show Federal Government has 'caved in to the super rich'

ABC  

Critics have slammed the Government's backdown on superannuation as a "cave-in to the super rich" that undermines efforts to make the retirement savings system more equitable. "The proposed caps on high-end super are sensible, if modest, reforms and we welcome the Government adopting our proposal to halve the annual non-concessional contribution cap from $180,000 to $100,000," ACOSS president Cassandra Goldie …

Superannuation explained: Will the Government's proposed measures affect you?
8 years, 9 months ago

Superannuation explained: Will the Government's proposed measures affect you?

ABC  

The Government is still under fire over superannuation changes it announced over a month ago in its budget. The ALP would also charge high income earners 30 per cent tax on contributions after their annual income, including super, passes $250,000. In the budget, the Government announced a lowering of the income threshold at which the 30 per cent tax rate …

Election 2016: Malcolm Turnbull says Coalition will not back down from superannuation changes
8 years, 10 months ago

Election 2016: Malcolm Turnbull says Coalition will not back down from superannuation changes

ABC  

Prime Minister Malcolm Turnbull says he will not back down from the Coalition's planned changes to superannuation, despite internal tension over the policy. "Fifteen per cent remains a very concessional tax rate," Mr Turnbull said. In the budget, the Government announced a lowering of the income threshold at which the 30 per cent tax rate kicks in on superannuation contributions …

Election 2016: Coalition claims superannuation changes will only affect rich 'simply incorrect': IPA
8 years, 10 months ago

Election 2016: Coalition claims superannuation changes will only affect rich 'simply incorrect': IPA

ABC  

The Government has faced renewed criticism of claims that its proposed changes to superannuation will only leave the top 4 per cent of wealthy Australians worse off. "So for example, one particular superannuation fund estimates that up to 90 per cent of their members who use these pension programs earn less than $100,000 a year," he said. In the budget, …

Budget 2016 changes to superannuation, what do they mean for you?
8 years, 10 months ago

Budget 2016 changes to superannuation, what do they mean for you?

ABC  

So the Government has called time on the blank cheque the taxpayer was giving wealthy retirees. For example, a person earning the average wage of $57,980 who made the current 9.5 per cent compulsory contribution over a 40-year working life would accrue around $206,000 if their super fund earned 5 per cent a year. If they combined their super with …

Labor's super silly Super response
8 years, 10 months ago

Labor's super silly Super response

ABC  

Treasurer Scott Morrison revealed the biggest change in superannuation concessions in years by putting a cap on the tax free rort for those over 60. It is the biggest change in superannuation concessions since then-treasurer Peter Costello showered largesse on the Liberal Party's core high-income, older-aged constituency by making super earnings and payouts tax-free after 60 years of age. Shadow …

Budget 2016: Superannuation shake-up to reduce high income tax breaks
8 years, 10 months ago

Budget 2016: Superannuation shake-up to reduce high income tax breaks

ABC  

Treasurer Scott Morrison has announced the biggest shake-up to Australia's superannuation system in a decade, targeting high-income earners while retaining concessions for the lowest paid. Key points: Super changes go further than expected Tax-free super balances capped at $1.6 million Move will raise $2 billion over three years While some roll-back of high end super concessions was flagged in the …

Younger middle income earners to lose most from pension changes: Industry Super
9 years, 10 months ago

Younger middle income earners to lose most from pension changes: Industry Super

ABC  

Younger middle income earners are set to bear the brunt of changes to the aged pension assets test according to newly released modelling by Industry Super Australia. However, while those immediate savings are predominantly off the back of wealthier current retirees, Industry Super Australia forecasts that future savings from this measure will increasingly be off the back of middle income …

Labor proposes superannuation tax hikes for high-income, wealthy Australians
9 years, 11 months ago

Labor proposes superannuation tax hikes for high-income, wealthy Australians

ABC  

The Federal Opposition has declared the nation's superannuation system a "tax haven" for the wealthy and detailed a plan to increase super taxes on high-income earners. The two moves would see retirees lose tax-free status on annual superannuation earnings above $75,000, and more people paying 30 per cent tax on contributions. Shadow Treasurer Chris Bowen says the superannuation tax concession …

Parties trade blows over possible super changes
12 years, 1 month ago

Parties trade blows over possible super changes

ABC  

The Federal Opposition is continuing to put pressure on the Government to reveal what changes it is considering making to superannuation in the May budget. The Prime Minister yesterday ruled out taxing withdrawals on super for those over 60, but in Question Time today Nationals Leader Warren Truss asked Julia Gillard what changes were being ruled in. "They may be …

Super industry warns Government against targeting sector
12 years, 6 months ago

Super industry warns Government against targeting sector

ABC  

The superannuation industry is warning the Government against targeting the $1.4 trillion sector for extra revenue to fund its "short-term political issues". "Every time Labor increases taxes on Australian super savers they reduce the incentive for them to do the right thing by saving towards achieving a self-funded retirement," Opposition superannuation spokesman Mathias Cormann said. "These additional Labor Party taxes …

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