Pensioners & Superannuants welcome Government’s response to the Henry Review

“Pensioners and superannuants welcome the Australian Government’s response to the Henry Review, as it will make the superannuation system fairer for low-income earners, and boost retirement incomes. We call on all MPs to pass these reforms, which are too important to be subject to the political wrangling that has resulted in the demise of other policies,” said Charmaine Crowe, CPSA Policy Coordinator.

Superannuation

“CPSA has long advocated the abolition of the tax on low-income workers’ superannuation contributions. Rebating the 15% tax for low-income earners will add fairness to the system, and increase the retirement incomes of those who need it most.”

“However, CPSA calls for this to continue once the Superannuation Guarantee increases from nine to 12% to ensure that low-income earners receive the full tax concession into the future.

The $500 maximum rebate on tax paid will not be indexed and therefore, once wages rise, and the super guarantee is increased, low-income earners will pay tax on part of their compulsory super contributions.”

“The increase to the Superannuation Guarantee to 12% will boost retirement savings, but CPSA is concerned that it may be at the expense of reduced hours for employees.”

“CPSA welcomes the increase to the age up to which employers must make superannuation contributions from 70 to 75.”

“CPSA still has concerns about people with broken workforce patterns. Casual or part-time workers, as well as those with caring roles, or who fall ill, are disadvantaged because they cannot accumulate enough superannuation in time for their retirement. Although these groups will benefit from the proposed reforms to a degree, they will still be behind the eight-ball when it comes to adequate retirement incomes.”

“CPSA calls for the reinstatement of the Superannuation Co-contribution rates of $1.50 for every $1 voluntarily invested in super to help those on low incomes. “

Pensions

“CPSA welcomes the Government’s commitment to maintain current means-testing arrangements for the family home, and to not reduce indexation of pension payments.”

“Pensioners however, would benefit from Henry’s recommendation of indexing Rent Assistance to market-rent rises.”

“This would greatly help pensioners who rent privately, especially those who pay most of their income on rent alone.”

Media contact: 0410 612 182

Charmaine Crowe
Policy Coordinator
Combined Pensioners and Superannuants Association (CPSA)
Level 9, 28 Foveaux Street Surry Hills NSW, 2010
Phone (02) 9281 3588
Mob 0410 612 182
Fax (02) 9281 9716