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.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Aware Super has outlined its systematic approach to corporate engagement as institutional investors increasingly assert their influence on company boards and take on an active stewardship role.
The country’s second-largest super fund has completed its fourth SFT this past financial year and welcomes almost 5,000 new members.
The corporate fund has announced it is seeking a suitable merger partner as the number of corporate super funds in Australia continues to dwindle.
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,”
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