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Reader survey on retrospectivity and super in Budget 2016

Reaction to the superannuation changes in the 2016 Budget vary widely, but many people believe the changes will have a significant impact on their retirement plans.

Please share your opinion on the Budget and 12 changes to superannuation rules. We will publish the full results next week.

The Reader Survey is linked here.

13 Comments
Lian
May 18, 2016

This new budget is affecting everybody future except the politician and everyone of us are worried that one day we will outlive our saving but not the politician. The politician can get another good job with good pay and still collecting good pension from the tax payer until they die, so they don't have to worry about they will outlive their saving. They don't even have to touch their super for their whole pension life and can still live very very well. They have millions in their asset but still collecting tax payer pension. If those politicians care about this country future and our young generation, then they should show good example by removing all this purge ( benefits ) for the politician. And their pension is not just like ordinarily pension of about $30,000 per year, is over $100,000 per year. They are so well off, how come they still need pension? Don't be fooled, they don't care about the people, about this country, they care about they themself.

Matt
May 17, 2016

For the Liberals to suggest that the changes announced in the Budget are not retrospective beggars belief. They are either;

1) Lying

2) Complete idiots, or

3) Treating the electorate as complete idiots

Whatever the case, do we really want people like this running the country?

Greg McKay
May 16, 2016

With budget deficits red for the foreseeable it won't be long before a future treasurer will be revisiting both the proposed caps and the tax rates in the hunt for income. This is the start of the big grab, they have to go to where the money is. We will soon be hearing a lot more about super being used as an estate planning tool, excess account balances of deceased members will need to revert to the state in the name of fairness. Hold on to your hat and your money if you can.

Adrian Pauley
May 13, 2016

Try the NZ system --everyone gets a pension at age 65 and then it's taxed if you have earnings above a certain amount--much less paperwork, less finance planning needed.

Joe
May 13, 2016

There is a 16% inheritance tax on what's left over in super.
That was another tax they quietly slipped in a few years ago.

leon trotksy
May 13, 2016

They're constantly playing around with super, except their own! Hitting the older people is just so wrong, these people made this country what it is by there toil!! They should be rewarded in there golden years.

Maxwell J
May 12, 2016

I have earned, paid full tax, saved and invested all my life, in accordance with the law and rules, for my old age. Now, the Government is retrospectively going to penalise my savings in my SMSF Super without any pre warning. If I had known about their plans, I would have done things differently. So now I will end up on the Governments Old Age Pension instead of my own.

George Gilchrist
May 12, 2016

Amongst all the comment about the 2016 Budget, the most unfair policy of all for middle Australia, the changes to the Pension Assets Test in 2015 have been forgotten.

These were pushed through by a sneaky Scott Morrison with the help of an unholy alliance with the Greens. They were done in isolation, and not as part of any coherent plan for the future of Super.

These changes may have been forgotten by the politicians and commentators alike, but I wonder if they have been forgotten by the large number of effected voters??

Andrew B
May 12, 2016

You are so right George. I know somebody with an indexed public service pension of around $65k per annum. He also receives a part age pension because his assets total a quite low amount. Life for him is quite ok. On the other hand, I have no such pension and my assets currently provide a small part age pension. I will lose that income at the end of the year, but my friend will keep his. I will be expected to make up my shortfall by investing my assets. In the bank, at Centrelink deeming rate, this is a bad joke. Share investments put my capital at considerable risk. Maybe I will just get poorer until I can once again get a small age pension. Eventually, that will be a full age pension but that might have been avoided without Morrison's change.

sfg
May 13, 2016

Andrew, just have a good time, and then you die.

Laine
May 20, 2016

George

I too am surprised at how little media coverage the proposed pension asset test changes have received. Some couples will be losing over $13k of their current pension income, and over 300,000 part pensioners will be affected.

A retiree couple with more than $375k will lose $7500 of pension for every $100k above this limit, but will only receive $3000 interest in a bank account. So for every $100k you spend on world cruises, home improvements, or simply hide under the mattress, you gain $4500 a year in income.

I find it appalling that we are putting our seniors, some of them with a reduced ability to think logically, in this situation.

For a couple who have saved $850k over their working lives, the interest from a bank account will give them an income of only around $24,000 a year. They will get no age pension to supplement this. If they had never saved anything they would have a full pension of $34,000.

Yes, okay they can draw down their capital to use for living expenses, but they could just as easily have spent this money living a better lifestyle before they retired.

There is no incentive for a couple to save for retirement beyond $375k unless they can save more than $1m.

There is every incentive for these people to spend anything over the $375k before they reach pension age.

Vince Vozzo
May 12, 2016

Govt said that there would be NO changes to super. The budget proposal is a change that is also RETROSPECTIVE. Little wonder that the public has no faith in super.
Josh Freidenberg MP lost me when he tried to say that the changes were not an increase or new tax. Don't appreciate being treated like a fool.

margaret
May 12, 2016

What about an inheritance tax on large left-over super fund balances?

 

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