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… Read More »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%… Read More »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… Read More »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… Read More »More people are retiring with high mortgage debts. The implications are huge
At last, an answer to the $5 billion question: who gets the imputation cheques Labor will take away?
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… Read More »At last, an answer to the $5 billion question: who gets the imputation cheques Labor will take away?
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 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… Read More »It’s hard to find out who Labor’s dividend imputation policy will hit, but it is possible, and it isn’t the poor
The government is introducing a raft of changes to the regulation of superannuation in a bid to give consumers more power over their retirement funds. But, in fact, consumers are unlikely to use these new powers and the changes might not improve super fund performance. The headline change introduces annual… Read More »Giving you more say in your super? Not likely with these changes
The Australian and New Zealand retirement systems both feature public pensions and private superannuation. But there are things to learn from the differences between the two systems. While Australians may end up with more savings in retirement, New Zealand’s system is simpler and offers more freedom. In Australia, contributions to… Read More »What Australia can learn from the New Zealand retirement system
The federal government is split on whether first home buyers in Australia should be allowed to use part of their superannuation for home deposits. But what the more strident critics miss is that Australia’s superannuation system already channels a significant proportion of retirement savings into housing. It does this not… Read More »Here’s how superannuation is already financing homes
The Howard government, when flush with revenue, made a bad tax decisions which continue to haunt current policy makers. It removed the tax on the retirement phase of superannuation, this has been partly resolved by current government’s recent changes. But the Howard government also replaced the full taxation of real… Read More »Despite superannuation changes, one tax loophole remains