Super sector backs pension assets test
The Government has won superannuation industry support for the pension measures announced in tonight’s Budget with the Australian Institute of Superannuation Trustees (AIST) describing them as improving fairness and sustainability.
AIST chief executive, Tom Garcia, warned however, superannuation and its role in the greater economy had to be critically examined the context of the broader pension debate.
The Association of Superannuation Funds of Australia (ASFA) welcome measures such as making it easier for members to be reunited with their lost and unclaimed super, and changes to child care rebates to make it easier for women to return to work.
ASFA chief executive, Pauline Vamos, said these moves would also provide a significant boost to the retirement savings of hundreds of thousands of people in the community.
Garcia said the proposed changes to the pension asset test - which will benefit less well-off pensioners but tighten the eligibility for those pensioners with higher assets - were a welcome alternative to the Government's previous plan to change the pension indexation rate.
"The Government's decision to retain the indexing of the Age Pension twice a year at the highest indexation recognises the significant role the Age Pension will continue to have in providing and boosting the income of Australian retirees for decades to come," he said.
Garcia said it was good to see that there were no major changes or surprise developments concerning superannuation in the Budget.
"We welcome the Government's decision to leave super alone in this budget so that it can be comprehensively examined in the current Tax Review,” Garcia said.
Recommended for you
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.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
