TTR change biggest detrimental affect
An estimated 1.26 million people will be detrimentally affected by the proposed superannuation Budget measures, and over 4.3 million will be better off, according to the Association of Superannuation Funds of Australia (ASFA).
Pulling figures from Budget papers, the Australian Prudential and Regulation Authority (APRA), and the Australian Taxation Office (ATO), ASFA said some individuals could be impacted by more than one measure.
The transition-to-retirement (TTR) change had the largest effect on those worse off, with over 550,000 estimated to be affected.
This was followed by the $25,000 concessional contribution cap and the lower Division 293 threshold changes (up to 500,000 and many of those affected by both), and the $1.6 million transfer cap change (110,000).
However, 3.2 million individuals would be better off thanks to the low income superannuation tax offset (LISTO) measure.
This was followed by 850,000 for the tax deduction for personal contributions, and 230,000 for the catch-up concessional contributions provision.
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
