Peter Dutton
Quarterly performance figures released by the Australian Prudential Regulation Authority (APRA) have shown Australian superannuation assets have reached $1.1 trillion, growing 4.4 per cent in the March 2007 quarter and 17.1 per cent over the past 12 months.
The Federal Minister for Revenue and Assistant Treasurer Peter Dutton attributed the strong growth in superannuation to the Government’s strong economic management and welcomed the strong growth results.
“With 1 July rapidly approaching, superannuation is about to become an even better investment for Australians”, Dutton said.
Dutton pointed out that the Better Super reforms have swept away complex tax arrangements and increased retirement incomes by improving incentives to work and save.
“Superannuation benefits paid from a taxed fund will be tax free for people aged 60 and over, [with] no tax on super benefits taken as an income stream or as a lump sum.”
“For a 40 year old person on an average income, these changes will mean they will have around an extra $76 a week to spend in retirement at age 65 without contributing any extra to their super,” explained Dutton.
“The reforms also significantly improve contribution incentives for the self-employed, provide more flexibility in how and when people receive their superannuation payout and, from September 20, 2007, halve the rate at which the age pension phases out under the assets test.”
Dutton also pointed out that under the Government real wages have grown by 20.08 per cent and said it has been working hard to deliver record low unemployment.
In other developments, Royal assent has been granted to the Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007, which includes new rules that allow distribution of annual reports over the Internet.
The amendment will also increase the monetary thresholds to define a large proprietary company, as these thresholds have not been adjusted since 1995. These changes apply immediately, and apply to the 2006-07 financial year.
