The Actuaries Institute said there is an urgent need for sensible taxation and policy reform that will safeguard retirees’ living standards and reduce pressure on future budgets.
In its response to the tax discussion paper issued recently by Treasurer Joe Hockey, the Actuaries Institute said there is growing community clamour for clarity and certainty around superannuation taxation arrangements and retirement incomes policy.
Among its recommendations, the Actuaries Institute believes the government should consider introducing a lifetime cap of around A$2.5 million (US$1.9 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.
“Superannuation should not be out of bounds for revision and review. Via a summit or an independent panel of experts, the government should be taking advice that will halt the obvious and perplexing discrepancies that are emerging in current policy and which are confusing many workers and retirees,” Ms Estelle Pearson, the President of the Actuaries Institute said.