Objective of super rules out super for home deposits
The Federal Government has released the consultation on the objective of superannuation with stating that it is to preserve savings to deliver income for a dignified retirement, alongside government support in and equitable and sustainable way.
In doing so, the objective consultation paper appears to close the door for any further pandemic early release schemes stating that preserving savings means restricting access to superannuation savings for a person’s retirement only.
It also states that delivery of income emphasises the principle of superannuation being to provide income in retirement.
The consultation paper also makes clear that superannuation should not be used for a home deposit or for estate planning purposes.
The consultation paper also says that the Government support encapsulates and highlights the superannuation system’s interaction with the age pension.
The consultation paper states that:
‘Preserve savings’ refers to the principle of preservation; that is, the concept that contributions to superannuation should not be accessed unless for the purpose of income in retirement, apart from exceptional circumstances. This recognises that superannuation exists first and foremost as a savings vehicle to fund retirement and not a pool of individuals’ savings to meet other lifetime costs.
‘Deliver income’ captures the purpose of the superannuation system – to provide universal savings that are then drawn down in retirement to deliver income that support retirees’ standards of living. The focus on delivering income makes clear that the purpose of superannuation is not for minimising tax on wealth accumulation or enabling retirees to leave tax-effective bequests.
Wow it took them millions to spend to state the obvious!! Do we clap now?
It’s actually the Protecting Industry Super FUM Objective.
But hey who didn’t think ISA would be driving the Super ship their way as much as possible under Labor.
The only question was why did the LNP / Frydenberg & Hume do more to help Industry Super / Labor’s slush funds than Labor even do ?????
Dumbfounded by that part.
new death taxes are coming
Here we go again.
Retiree tax V2 that will have retrospective changes affecting many super saver’s that have complied with the rules over decades.
Another left wing attack on those who have managed to accumulate larger super balances in an effort to bring everyone down to the lowest common denominator.
Government desperately aiming to collect more tax from retirees.
So what about political donations, sporting team sponsorships etc.? Super is for retirement. Why is Labor trying to reduce disclosure laws then, because anything being paid from members super money outside of the super system deserves scrutiny.
Seems odd and hypocritical from the party of “transparency and accountability.”
In the USA and probably other countries a significant portion of residential housing is provided in mobile (relocatable) home parks, however it is rare for the homes to actually be relocated. You buy the house as a chattel and pay rent for the land to the park owner. If such parks were owned in an appropriate structure (such as an unlisted or listed broad based property trust open to the public) there is no reason why superannuation funds (institutional or self managed) could not invest in them. I do not mean the lot upon which an individuals relocatable house is situated, I mean the fund would have an investment interest in residential land being operated as large scale relocatable home parks. I am familiar with this type of residential accommodation through family connections and the houses are not shacks but proper spacious family homes. Wake up Australia, the solution to our housing shortage is right in front of our eyes, but the relevant authorities lack the insight or imagination to see the obvious solution.
Under a thinly worn veil of super member protections the Labor government’s objective has become highly visible. They have taken something the advice industry has been lobbying for, which is the protection of member super balances to stop government from continually changing the taxation rules to suit their economic whims and used it to ensure their mates have a monopoly over the sector, and so they can raise DEATH TAXES. I’m astonished.. almost speechless. I suggest we start reading the proposal paper in detail to commence submissions. Does anyone know what this means for:
Better to invest in Bonds
Does the Deliver Income statement mean that lumpsum withdrawal at retirement to pay off debt, buy the caravan etc will be no longer allowed?