Budget could see big changes to Age Pension, tax and super, says BT
The government may consider significant changes to the Age Pension and the taxation of super in the budget this year, says BT Technical Services.
BT head of financial literacy and advocacy Bryan Ashenden said given the impact of COVID-19, the federal budget, due to be handed down on 6 October, could be a very interesting one.
“If the government wants to make some significant changes to the way things have worked in the past, they may decide this is the time to do it,” he said.
Depending on the outcomes of the retirement income review, the government may consider changes to income testing and asset testing for the Age Pension, said Mr Ashenden, who added that it could increase the preservation age to encourage people to work for longer.
“Is it a time where [they decide] to change the taxation of the superannuation system? Where we move from a 15 per cent flat rate and zero per cent rate in retirement to having some taxation on earnings? Will it become the marginal tax rate less 15 per cent during accumulation?” he asked.
He also suggested the government may consider income tax rate changes.
“There has already been talk about bringing forward the changes that were initially due to take effect from 1 July 2022 and whether they will be brought forward to 1 July 2021, or even brought forward to apply to this financial year and whether those other changes that were due to take effect 1 July 2024 will also be brought forward,” he said.
What do you think of these ideas?
Seeing Morrison and FriedBurger screamed "retirement tax" loudly and continually before the last election (even though that was never actually proposed by Labor) they'd have a pretty big hide if they touched retirement income themselves.
If it wasn't so serious it would be funny. They were crowing and smirking prematurely about being "back in the black" and having a "budget surplus". They didn't, and never will have.