POWERED BY MOMENTUM MEDIA
Frydenberg rules out super draw-down changes
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.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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(%)
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,”