POWERED BY MOMENTUM MEDIA
ASFA urges passage of key legislation
The Federal Government needs to clarify Age Pension means testing rules to better enable the development of retirement income products, according to the Association of Superannuation Funds of Australia (ASFA).
The ASFA used a submission to the Senate Economics Legislation Committee review of the Government legislation underpinning the new retirement income products regime to point to the current lack of clarity.
It said that the intention to remove the tax barriers and encourage a wider range of innovative retirement income stream products was first announced in the 2016/17 Budget and there was a need to have the supporting legislative changes in place as soon as possible.
It said the means test changes contained int eh current legislation were the final step required, in circumstances where clarity of treatment of such products was required before they could come to market.
“Current means testing rules are unclear in regard to their application to a range of innovative products with certain existing and potential new product types appearing to fall outside the scope of current means test rules,” the submission said.
“Age Pension eligibility and the amount of Age Pension that is paid both initially and over time are critical inputs into retirement financial decision making,” it said. “While a variety of approaches are possible, ASFA considers that the new means testing rules have arrived at an appropriate trade-off between simplicity and neutrality in application to different types of retirement income products.”
It said that the changes contained in the legislation were prospective and would not lead to any adverse outcomes for people currently receiving payments from annuities and similar financial products and that to delay the passage of the legislation during the next parliamentary sitting would likely result in a pushback of the start date for the new means test rules.
Recommended for you
Speaking to Super Review, the $70 billion fund has unveiled its new solution to address the ‘cognitive load’ of retirement as members enter their golden years.
New research has suggested it’s time to reconsider the home as a fourth pillar of the retirement income system, alongside the age pension, superannuation, and voluntary private savings.
New research has revealed over 60 per cent of retirees believe their super fund offers retirement income products suitable to support their retirement lifestyle.
Some retirees are “needlessly” paying two sets of fees and often more tax than they need to, according to the industry body.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
