Latest Financial Planning News
Aged care report goes to the heart of Australia’s tax debate
Removed super no longer protected from creditors: court
ATO investigating 16.5k SMSFs over valuation compliance
The 2025 Financial Year Tax & Super Changes You Need to Know!
Investment and economic outlook, March 2024
The compounding benefits from reinvesting dividends
Three things to consider when switching your super
Oldest Buildings in the World.
Illegal access nets $637 million
Trustee decisions are at their own discretion: expert
Regular reviews and safekeeping of documents vital: expert
Latest stats back up research into SMSF longevity and returns: educator
Investment and economic outlook, February 2024
Planning financially for a career break
Could your SMSF do with more diversification?
Countries producing the most solar power by gigawatt hours
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
Quarterly reporting regime means communication now paramount: expert
Plan now to take advantage of 5-year carry forward rule: expert
Why investors are firmly focused on interest rates
Super literacy low for cash-strapped
Four timeless principles for investing success
Investment and economic outlook, January 2024
Wheat Production by Country
Time to start planning for stage 3 tax cuts: technical manager
Millions of Australians lose by leaving savings in default MySuper funds
Vanguard economic and market outlook for 2024: A return to sound money
An investment year of ups and downs
How to tame the market's skewness
The Countries that Export the Most Wine in the World
Tips for preparing for the best tax outcomes
Frydenberg flags super freeze

 

Treasurer Josh Frydenberg has weighed in on the superannuation debate in the clearest sign yet that the government may be considering a freeze to the legislated increase.

 



       


In a speech at the National Press Club, Treasurer Josh Frydenberg echoed the findings of the Retirement Income Review (RIR) and said that 9.5 per cent superannuation was enough to provide an adequate standard of living in retirement. 


“This is why, as the Prime Minister and I have said, we must rightfully and carefully consider the implications of the legislated increase to the superannuation guarantee before the 1st of July this year. This is even more important as we are in a time when our economy is recovering from the largest economic shock since the Great Depression,” Mr Frydenberg said.


The RIR found that there is a trade-off between wages and superannuation, with a median earner approximately $32,000 worse off over the course of their working life. 


While the Morrison government has so far shied away from using the findings to freeze the increase, Mr Frydenberg said that he would “remain sceptical of those who, in the pursuit of their own interest, seek to restrict the legitimate choices Australians should have to save for their retirement”. 


“It is simply not true, as some would have us believe, that there is not a limit to how high the superannuation guarantee can be increased in the name of delivering even higher retirement incomes,” Mr Frydenberg said.


“For some, there isn’t a problem that cannot be solved through higher rates of contribution to superannuation. These myths do not help Australians plan for retirement, or feel more confident and more secure in their retirement.” 


Mr Frydenberg also called on funds to create new products and guidance that would allow retirees to spend their super more effectively, noting that many passed away without spending the full amount.


“This is despite the fact that retirees today have not benefited from the superannuation system their whole working life. The review shows that, if nothing changes, by 2060 one in every three dollars paid out of superannuation will be as part of a bequest,” Mr Frydenberg said.


 


 


Lachlan Maddock
26 February 2021
smsfadviser.com


 




10th-March-2021