POWERED BY MOMENTUM MEDIA
Super tax regime works says Rice
The existing tax regime around superannuation works and does not warrant significant change, according to the chief executive of leading actuarial firm, Rice Warner, Michael Rice.
In an analysis published by the consultancy this week, Rice claims that the fundamental issue missing in recent debate over the concessional tax treatment of superannuation is simply that the current system works, albeit that some simple enhancements would improve it.
“But a wholesale restructuring of the taxation of super, aimed at creating more equitable and adequate retirement outcomes, would deliver little additional benefit,” he said.
Rice said that his firm supported upholding current taxation concessions, along with some further policy enhancements such as allowing concessional caps for couples at 150 per cent of the single person’s cap (even if one partner is not working) and limiting non-concessional contributions to no more than concessional ones.
“Put simply, tax concessions work,” his analysis said. “It provides compulsion for employers to contribute for their employees and stimulate incentives for voluntary contributions.”
Rice said that as the May 2014 Federal Budget had shown, the cost of looking after retirees in Australia was the nation’s largest expense at $40 billion a year.
“This figure is projected to increase significantly to $50 billion in 2018. In addition, as the baby-boomer generation moves through retirement, we can expect health costs and aged care costs to grow rapidly. But these costs are the result of inadequate savings by previous generations,” he said. “We simply need to enable working age Australians to build reasonable superannuation in order to help reduce their own costs in future.”
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
