The Federal Government had next year’s federal election firmly in its sights with this budget, and retirees were among the beneficiaries of its fiscal largesse.
In the 2019 federal election, Labor’s proposal to abolish cash refunds for excess franking credits went down like a lead balloon. So, will the $3 million cap proposal see Labor revisit history?
Super tax changes will cost retirees, says Parametric
The possibility for government to increase superannuation taxes in response to the ballooning
budget deficit caused by COVID-19 could severely hurt member balances at retirement, according to
a research note by the global implementation specialist manager Parametric.
Raewyn Williams, Head of Research (Australia) and Analyst Josh McKenzie, in a short paper titled
“Will retirees pay the price for superannuation tax rises?” argue that investment tax inside super
may be a political “soft target” because it won’t be felt directly in most voters’ hip pockets, but it will
come with an unfavorable “tit for tat” – the longer-term impact on retirement outcomes.
Read the full Media Release: here.
