Written by Richard Holden, UNSW. The just-announced inquiry into Australia’s retirement income system ought to be anything but run-of-the-mill. Taking place 25 years after the introduction of compulsory superannuation, it provides an opportunity to either fix a broken system, or discard it as failed experiment. Incremental reform won’t work. There’s a budget problem The first… Continue reading Vital signs. Our compulsory super system is broken. We ought to axe it, or completely reform it
Written by Anthony Asher, UNSW. Here’s the boldest idea the government’s inquiry into retirement incomes should consider but might not: no longer exempting all of the value of each retiree’s home from the pension assets test. The test would merely exempt part of the value of retirees’ homes. The change would free-up funds to support… Continue reading Postcode by postcode: a clever way to include homes in the age pension assets test
Written by Peter Martin, Crawford School of Public Policy, Australian National University. The government’s new retirement incomes review will need to work quickly. On Friday Treasurer Josh Frydenberg said he expected a final report by June, just seven months after the issues paper he wants it to deliver by November. The deadline is tight for… Continue reading 5 questions about superannuation the government’s new inquiry will need to ask
Written by Michelle Grattan, University of Canberra. Soon after the election Treasurer Frydenberg flagged there would be an inquiry into retirement incomes. Since then, no details have emerged. But there is gossip around Canberra there might be some action in the next couple of weeks on a review that would report before the end of… Continue reading Grattan on Friday: How ‘guaranteed’ is a rise in the superannuation guarantee?
Written by Helen Hodgson, Curtin University and Myra Hamilton, UNSW. Making super contributions voluntary for people earning less than A$50,000 a year, as proposed by Liberal Senator Andrew Bragg, would be a backward step for women. It would predominantly be used by women, because more women earn less than A$50,000 than men. In 2016-17, 306,008… Continue reading Voluntary super: a good way to increase women’s dependence on men
Written by Peter Martin, Crawford School of Public Policy, Australian National University. Treasurer Josh Frydenberg has cut the deeming rate for large investments from 3.25% to 3%, and for smaller ones from 1.75% all the way down to 1%, backdated to the start of July. But what exactly is a deeming rate, and why does… Continue reading They’ve cut deeming rates, but what are they?
Written by Brendan Coates, Grattan Institute and Owain Emslie, Grattan Institute. Compulsory superannuation was sold to Australians on the basis that it would make us better off. But as the government prepares for an independent inquiry into retirement incomes, new Grattan Institute research finds that increasing compulsory contributions from 9.5% of wages to 12%, as… Continue reading Super shock: more compulsory super would make Middle Australia poorer, not richer
Written by Brendan Coates, Grattan Institute. It is often claimed that Australia’s superannuation system will ease the budgetary burden of an ageing population. It’s certainly the impression put about by those pushing for an increase in employers’ compulsory contributions from 9.5% to 12%. But new estimates suggest that for up to a century that wouldn’t… Continue reading Myth busted. Boosting super would cost the budget more than it saved on age pensions
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?