Tag: Budget 2017/18

The SMSF Association has urged the Federal Government to deliver a period of stability for superannuation in the upcoming 2017/18 Budget.

Association Head of Policy Jordan George said: “Superannuation funds need a period of stability, not only to ensure that they are able to implement any changes required to meet the new superannuation laws, but to foster confidence in the system.”

“The Government’s moves to enshrine the objectives of superannuation in law are a welcome step in this direction; however, the objectives must be fit-for-purpose to deliver the stability the system so badly needs. It is also essential to remove superannuation policy from the regular budgetary cycle.” Read more...

Industry Super Australia says the 2017/18 Budget, to be released next week, must address the issue of unpaid superannuation or else the cost of the age pension will increase by $100 million a year.

An analysis of ATO data, by Industry Super Australia, shows that almost one in three employees missed out on a total of $5.6 billion in unpaid super entitlements in 2013/14, leading to those nearing retirement having an retirement balances $23,857 lower on average.

“Using conservative assumptions, Industry Super Australia estimates annual superannuation pension drawdowns are $300 million per annum less than they otherwise would be, costing the Government $98 million per annum in extra age pension payments.” Read more...

ACOSS, the Australian Council of Social Service, has recommended the 2017/18 Budget include a tax on the pension phase earnings of superannuation funds.

As noted in the pre-Budget submission, a 15% tax rate applies to the income of superannuation funds in accumulation phase with 0% tax applying for pension phase.

ACOSS recommends that the 15% tax should be extended to the pension phase, increasing by 3% each year from July 2017. Though there would be a 15% rebate for taxpayers whose income was below the tax free threshold. Read more...

The Australian Institute of Superannuation Trustees says that technological improvements make lost super less of an issue, and so the threshold at which lost super is transferred to the ATO should be reduced back to $2,000.

In their 2017/18 pre-Budget submission AIST recommends that the lost super threshold, which increased to $6,000 from the start of the year, be reduced back to $4,000 from 1 January 2018 and then to $2,000 in 2019.

“AIST notes and welcomes initiatives taken at the ATO to reduce red tape for small business and to increase the efficiency of the superannuation system,” says the pre-Budget submission. Read more...

The Financial Planning Association of Australia (FPA) has recommended the Government implement a number of changes to superannuation contributions in the upcoming 2017/18 Budget to encourage Australians to self-fund their retirement.

“With an ageing population and the additional pressure this will add to future budgets, the FPA strongly recommends that the Budget reflect policy decisions that are designed to support and encourage today’s working Australians to become self-funded in their retirement,” says the FPA 2017/18 pre-Budget submission. Read more...

National Seniors has called on the Government to partially wind-back the higher age pension taper rate.

“The changes to asset test thresholds and taper rates, which came into effect in 1 January 2017, are of significant concern to National Seniors members,” says the 2017/18 pre-budget submission by the organisation.

“While the increase to the assets test free area is welcomed and will improve the situation for around 170,000 pensioners, roughly 330,000 Age Pension recipients will lose either some or all of their pension and associated concessions.” Read more...