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.”
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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