Thank you for the opportunity to make a submission in relation to the 2020/21 Federal Budget. This submission will cover five topics: Responding to the Productivity Commission report into superannuation Providing superannuation policy clarity Removing the $450 Super Guarantee threshold Repealing the ‘work test’ Indexing the LISTO to increases in the Super Guarantee rate Respond… Continue reading 2020-21 Pre-Budget Submission
Written by Rachel Ong ViforJ, Curtin University and Gavin Wood, RMIT University. The number of mature age Australians carrying mortgage debt into retirement is soaring. And on average each mature age Australian with a mortgage debt owes much more relative to their income than 25 years ago. Microdata from the Bureau of Statistics survey of… Continue reading More people are retiring with high mortgage debts. The implications are huge
Written by Ben Phillips, Australian National University and Matthew Gray, Australian National University. Labor is banking on about A$5 billion per year from ending the cash payment of company tax refunds to dividend holders who don’t pay tax. It’ll exempt charities, non-profits, pensioners and part pensioners and other Australians on government allowances, including future pensioners.… Continue reading At last, an answer to the $5 billion question: who gets the imputation cheques Labor will take away?
Written by Brendan Coates, Grattan Institute. Stagnant wages are a huge issue in this election campaign. So it is odd that both major parties are hanging onto a policy that will take more out of workers’ pockets. Lifting compulsory superannuation contributions from 9.5% to 12% in five annual steps between and 2021 and 2025, as… Continue reading $20 billion per year. That’s how much higher superannuation could take from wages
Written by Elizabeth Savage, University of Technology Sydney. Labor’s proposal to end cash refunds of unused dividend imputation credits is highly targeted. It certainly doesn’t apply to age pensioners, even part pensioners, courtesy of Labor’s Pensioner Guarantee. Self managed super funds set up by pensioners before the announcement are also exempt. Nonetheless it is likely… Continue reading It’s hard to find out who Labor’s dividend imputation policy will hit, but it is possible, and it isn’t the poor
Written by Peter Martin, Crawford School of Public Policy, Australian National University. The Coalition is running out of time to do worthwhile things. Facing overwhelming odds of defeat in the election due within weeks, one of its last throws of the dice should be to do something Labor would never do, but which is urgently… Continue reading Frydenberg should call a no-holds-barred inquiry into superannuation, now, because Labor won’t
Written by Brendan Coates, Fellow with the Grattan Institute. Parliament is failing workers with superannuation. And this time it’s Labor and the Greens who are doing it. The Coalition’s Protecting Your Super Package Bill was designed to cut the unnecessary costs in super, significantly boosting balances when workers retire. It was gutted in parliament last week… Continue reading This time it’s Labor and the Greens standing in the way of cheaper super
Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University. You’re forgiven for being confused. Newspapers need to economise on words. Television and radio reporters need to economise on seconds. So they use shorthand: words like “dividend imputation”, “franking credits”, and yes, “retiree tax”. Which is fine if you already know what they… Continue reading Words that matter. What’s a franking credit? What’s dividend imputation? And what’s ‘retiree tax’?
Written by Helen Hodgson, Associate Professor, Curtin Law School and Curtin Business School, Curtin University Women retire with embarrassingly little super compared to men. In 2015-16 the typical (median) Australian woman retired with A$36,000. The typical male had A$110,000. When presented as averages, the difference is less stark because a small number of big superannuation… Continue reading We won’t fix female super until we fix female pay, but Labor’s ideas are a start
Written by Brendan Coates, Fellow at the Grattan Institute, and Owain Emslie, Associate at the Grattan Institute. When it comes to the gender gap in retirement incomes, symbolism appears to matter more than actually achieving something. Labor’s plan to add super contributions to government-funded parental leave was heralded by Opposition Leader Bill Shorten this… Continue reading Super. If Labor really wanted to help women in retirement, it would do something else