The Government may have signalled its preparedness to move on reducing deeming rates but it is not prepared to move on superannuation draw-down rates for those aged over 65.
The Treasurer, Josh Frydenberg, used a Sydney radio interview to make clear that Government’s unwillingness to change the draw-down rate formula, despite acknowledging that the deeming rates warranted a review.
In doing so, Frydenberg reinforced the point that the superannuation was not intended to be a wealth accumulation vehicle, but something spent inside the lives of account-holders.
“… it's supposed to be either a substitute or a supplement to the aged pension,” the Treasurer said. “That's why you get a concessional tax arrangement in relation to your super. And when the Government Actuary looked at the current minimum draw down rules, they found that it would lead to people at death still having around 25 per cent of that initial balance in their accounts.”
“It's not meant to be a wealth accumulation vehicle, super, it's supposed to be spent during our lives,” he said.
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest-growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
Re where he said :.
“It's not meant to be a wealth accumulation vehicle, super, it's supposed to be spent during our lives,”
I would say that in the politicians case it would be :
“It's meant to be a wealth accumulation vehicle, super, it's not possible to spend that extreme amount of largesse during our lives,”