TIGHTENING access to the age pension will be up for discussion as part of a new push by the government to make superannuation fairer. 

The Superannuation Minister, Bill Shorten, has assembled 16 industry professionals and experts to advise him on "providing Australians with more options in retirement and improving certain superannuation concessions".

The roundtable, to be chaired by Mr Shorten, will toss around ideas rather than formally receive submissions or make recommendations. It is the approach the government took in deciding on the form of the carbon tax legislation.


"We have got to look at the ridiculous notion that super is there to take pressure off the age pension,'' one panel member, Richard Denniss, of the Australia Institute, said.

"Peter Costello and John Howard loosened the means test and the assets test for the pension very generously on their way out. People of substantial means are getting the part-pension and getting access to up to $800 a year to help meet their utility bills,'' Dr Denniss said.

"I'll be telling Mr Shorten he can't look at the rules governing superannuation without also looking at the rules governing access to the pension.''

Another panel member, Pauline Vamos, of the Association of Superannuation Funds of Australia, agreed.

''The means-test threshold has to move much higher," Ms Vamos said. "Super was meant to be a replacement for the pension, not tacked on alongside it."

Access to a part pension is at present available to couples earning up to $65,572 a year and single retirees earning up to $42,837 a year. The Industry Super Network's David Whiteley, who is also on the panel, said he expected it to examine Treasury modelling on the effect of access to the pension.

"Interaction with the pension has to be an element,'' Mr Whiteley said. ''I don't have a firm view on where access should be cut, but it has to be an element.''

Dr Denniss said a recent letter to a financial advice column concerned the situation of a man in receipt of a full age pension plus $15,000 a year from a defined-benefit super scheme, who had paid off his house and owned four investment properties.

"He wanted advice. I think that one letter spells out just about all that's wrong with this ridiculous notion that super is there to take pressure off the aged-pension system," he said.

An even bigger problem was that contributions to super were taxed at 15 per cent, yielding almost no tax benefit for someone on the 15 per cent marginal rate, but a big benefit for someone on the 45 per cent marginal rate.

Ms Vamos cautioned against making further big changes to the superannuation tax rules.

"No system is going to be perfect,'' she said. ''The changes people are talking about would really only tweak at the edges in terms of their effect, but would be very disruptive.''

Mr Shorten said it was important to examine the fairness of the system before the start of the phased increase in compulsory super contributions from 9 per cent to 12 per cent in July next year.

Read more: http://www.smh.com.au/business/pension-too-easy-for-rich-super-payees-say-advisers-20120129-1qo27.html#ixzz1ksmJJuJJ

It is true.

Labor do seem to have a total hatred of people who get on in their life and pay their own way.

Why should my parents get unfairly disadvantaged when they have paid their own way all their life and now live a relaxed life because they had the good sense to contribute heavily to their own retirement.

They will never have a worry over funds now.
What's the difference between them and those who are now worrying?
Common sense and planning.

Why do Labor always seem to look after losers?

Quote:


That's not a large income and to have a self funded income of this amount it would mean that the retirees have worked pretty damned hard in thier time in the work force.

This is just a clayton's tax increase.  You have worked and paid tax all your life only to have pension entitlements stolen by the Govt and redistributed to those that have not provided for themselves.

warrigal wrote on Jan 30^th, 2012 at 12:28pm:


then how can we refer to you then?

warrigal wrote on Jan 30^th, 2012 at 1:21pm:


are you allowed out on yoru own or do you need a carer?