superannuation

The superannuation industry is deeply divided over whether the government’s decision to change the super early release rules is really in the interest of the super fund members.
The measure allows Australians to apply via myGov for access of up to $10,000 of their superannuation from April this year and an additional $10,000 from July 1 2020 for another three months.

The Grattan Institute has released its submission to the government’s retirement incomes review, a review called in anticipation of five annual increases in compulsory superannuation contributions, scheduled to begin in July 2021.

The government’s retirement income review is being told our current tax and benefit treatment of retirement incomes is a mess.

Asked to conduct an independent review of Australia’s retirement income system, the panel appointed by treasurer Josh Frydenberg reported on Friday that it was all tied up with the family home.

The debate about whether compulsory employer superannuation contributions should be increased from the current level of 9.5 per cent is constantly simmering, waiting for the next opportunity to boil over.

There is a case for not proceeding with, or at least further deferring, the legislated increase in employers’ compulsory superannuation contributions from 9.5 per cent to 12 per cent.

Variations in personal circumstances show that a uniform rate of SG cannot be effective in targeting adequacy for all. However, we must choose a suitable rate – one that provides adequacy for most while not being excessively generous to too many.