Super tax changes will cost retirees
The possibility for government to increase superannuation taxes in response to the ballooning
budget deficit caused by COVID-19 could severely hurt member balances at retirement, according to a research note by the global implementation specialist manager Parametric.
Raewyn Williams, head of research (Australia) and analyst Josh McKenzie, in a short paper titled
“Will retirees pay the price for superannuation tax rises?” argue that investment tax inside super
may be a political “soft target” because it won’t be felt directly in most voters’ hip pockets, but it will
come with an unfavourable “tit for tat” – the longer-term impact on retirement outcomes.
Read the full Media Release: here.