FPA calls for tax rebates on low-income super contributions
The Financial Planning Association (FPA) is calling for the implementation of tax rebates on super contributions for low-income earners, as well a two-tiered age pension system
In a submission to the Federal Government’s Tax Review Panel, the FPA argues that key policy changes are needed to ensure Australian retirees are adequately catered for in all phases of retirement.
Chief executive Jo-Anne Bloch described the FPA’s recommendations as “integral to the sustainability of Australia’s retirement income system".
They would “help deliver a robust system for retirees and ensure that Australians achieve a comfortable retirement based on a system that is fair, flexible, accessible and sustainable".
“Meeting this challenge requires fundamental consideration of the hurdles to be overcome and innovative thinking on how retirees’ needs can be met,” she said.
Apart from the tax rebate on superannuation contributions, the key policy changes the FPA is recommending include:
- the introduction of a two-tiered age pension system that would see an age pension for people 65-79 and an old age pension for those 80 years and over;
- a deferral mechanism for the age pension to replace the Pension Bonus Scheme based on an agreed criteria;
- incentives to encourage a savings culture, workforce participation and deferral of the age pension; and
- an increase in the superannuation guarantee and expanded access for all Australians using ‘soft compulsion’.
Recommended for you
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
There has been a 16.3 per cent rise in the wealth of Australian billionaires this year to over $200 billion, UBS finds, as Australian advisers shift their offerings to meet this expansion and service their unique needs.
AZ NGA is looking to triple in size over the next five years as US investment giant Oaktree completes its $240 million investment in the professional services company.
