The Financial Planning Association (FPA) has urged the Federal Government to go further in making sure that people are not inadvertently disadvantaged by its decision to take the Age Pension age beyond age 65.
In a submission responding to Government proposals to align access to the tax-free component for genuine redundancies with the Age Pension, the FPA said it believed the Government needed to consider further moves.
“As the Age Pension age increases beyond 65 years, Treasury should take action to ensure that retirees are not disadvantaged by tax treatments that continue to be linked to 65 years of age,” the FPA submission said.
“In this context, the Treasury should consider where there are other provisions of the Income Tax Assessment Act 1997 that would be appropriate to review. For example, should a similar amendment be applied to subdivision 82C in relation to the calculation of the invalidity segment of an employment termination payment to ensure it captures payments made after 65 years of age but before the Age Pension age,” the FPA asked.