TTR changes should not hinder low income earners: Opposition
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.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.