Retirement
Labor's tax policies cop flak from conservatives
A conservative lobby group has taken aim at Labor’s policy to remove franking credit refunds, suggesting it could force retirees to lose thousands of dollars of income and delay retirement.
Labor's tax policies cop flak from conservatives
A conservative lobby group has taken aim at Labor’s policy to remove franking credit refunds, suggesting it could force retirees to lose thousands of dollars of income and delay retirement.
Advance Australia, the newly established conservative lobby group, has warned the federal opposition’s reforms to franking credits could see retirees who are not eligible for the aged pension lose a hefty 9 per cent of their super balances.
Gerard Benedet, national director of Advance Australia, says this equates to thousands of dollars less income for self-funded retirees, which could have a far-reaching impact on the entire economy.
“The imputation tax credit refund has been proven to increase spending power over the course of retirement by 5 to 6 per cent,” Mr Benedet said.
“A change in legislation may also result in pensioners providing less support to Australian companies and products, via spending and investments made.
“A decrease in spending power means an increase in prices, which hurts us all.
He says the fact that these changes will coincide with an increase to health insurance premiums will force many Australians to continue working for longer, despite being of retirement age.
“And now with health insurance premiums set to rise 3.25 per cent next year, older Aussies will inevitably be hit the hardest,” Mr Benedet said.
“The impact of the federal opposition’s proposed new superannuation tax will force Australians to work longer, and harder, before retiring – and that’s just not fair.
“These are Aussie retirees who have done the right thing by paying taxes their entire lives and being fiscally responsible planning for their retirement. Australians have the right to certainty in their retirement, and the right to be able to plan for the future with confidence.
“Many retirees have structured their retirement finances around the tax credits and they will face a significant drop in income if the tax credit rebate is scrapped next year,” Mr Benedet concluded.
RELATED ARTICLES
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
