TTR changes should not hinder low income earners: Opposition

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 The Federal opposition is consulting with stakeholders to ensure the proposed transition to retirement (TTR) changes in the Budget do not adversely impact people on lower incomes who are attempting to build up sufficient savings

Speaking at Money Management's sister publication, Super Review's Future of Superannuation conference today, shadow minister for financial services and superannuation, Jim Chalmers, said his party was consulting with stakeholders and experts about the implications of the proposed changes and whether it is implementable in its current form.  

"In Labor's response we are taking a cautious approach. We want to fully understand the distributional impacts, as well as behavioural effects and any unintended consequences," Chalmers said. 

He said the new measures would force people to move assets out of their retirement super accounts and permit catch-up concessional contributions which typically benefit people on high incomes. 

"It has lurched from one extreme to the other, a year ago claiming there is no issue to be addressed, and now introducing a degustation of unexpected and drastic changes," he said. 

"This unpredictability and inconsistency is why there is a line of critics stretching around the block. 

"Labor will not be rushed into a view without understanding all the policy costs and consequences and the various points of view in the community.

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I hate to say it because of the industry fund/union links, but they are sounding more sensible on some of these issues and the government has created problems for itself at precisely the wrong time.

Most pre-retirees have worked it out already. Its amazing how some in Canberra can't work it out.

An interesting development for planners worried that one of their biggest value adds (and lets face it advice fee justifications) was having the rug pulled out from under them.....

Might just be enough to sway a few votes from the planning community?

What a contradiction you've just made - biggest value adds don't therefore need a fee justification - value add is after fees. And if you knew anything about industry pricing you would realise advising on and setting up a TTR is no gravy train to wealth.

Turbull & Morrison have gone from "House of Cards" Underwood & Stamper, to Yes Prime Minister's bumbling Hacker and Woolley... (at least Humphrey Appleby had the smarts to be conniving).

Cannot believe their stupidity, not so much in regards to the effect it may or may not have on the FP industry but more the disenfranchisement of older Australians who may have normally voted for them.

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