The Government has announced the temporary 50% reduction in superannuation minimum drawdown rates will be extended until 30 June, 2023, a move which has been welcomed by the industry.
The measure was first introduced in 2020 as a response to COVID-19 and was in place for the 2019/20 and 2020/21 financial years.
Around 1.8 million people were expected to be affected by the move.
The Government also pledged to not increase taxes in superannuation in the next Parliament.
Acting chief executive of the Financial Services Council, Blake Briggs, said: “Given recent volatility in financial markets the Government’s commitment to extend the reduction in the minimum drawdown rate is positive as it will protect retirees from crystalising transitory reductions in their superannuation.”
“All Australians are entitled to certainty that the tax and contribution rules in superannuation will not be subject to constant tinkering. Stability in superannuation taxes is key to maintaining public confidence in Australia’s retirement system.”
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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