POWERED BY MOMENTUM MEDIA
Aged pension asset test changes hit middle-income Australians
Changes to the asset test rules for the ages pension damage the retirements of middle-income Australians, and should be replaced with a single test for both superannuation and the pension, according to the SMSF Association.
The Association believed that the changes to the means test taper rate and thresholds, which were effective from 1 January, 2017, actively discourage middle-income earners from saving to be self-sufficient in retirement, as they reduce individuals’ entitlement to the age pension as their assets increase.
John Maroney, SMSF Association chief executive said that this could significantly impact middle-income Australians receiving a part age pension payment to supplement their superannuation income.
The Association said that the asset test should instead be changed to integrate both superannuation and aged pension testing.
“We believe that having the superannuation and social security systems properly integrated is a key facet to achieve an efficient and sustainable retirement income system, and that the current siloed approach to policy making in these areas is creating perverse outcomes,” Maroney said.
The Association suggested that a single means test that applied a deeming rate to financial and non-financial assets could provide a more appropriate and simple alternative.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
