The Actuaries Institute has called for urgent and sensible reform of the superannuation and retirement incomes system, recommending the following in its response to the government’s tax discussion paper:
- introducing a lifetime cap of around $2.5 million on superannuation savings which can be transitioned into a superannuation income stream which pays no tax on investment earnings,
- lowering the high-earner 30% concessional tax rate to incomes above $180,000 from the current $300,000, and
- easing pension eligibility restrictions linked to the sale of the family home, such that a portion of any home equity released on the sale of the family home, or released in some other way using an allowable financial instrument, is exempted from means testing.
Meanwhile, Industry Super Australia has called on the Government to apply limits to superannuation concessions, which tend to provide the greatest benefits to rich old men. From The AFR:
