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Security in retirement: planning for tomorrow today
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SECURITY IN RETIREMENT: PLANNING FOR TOMORROW TODAY
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The Federal Treasurer, the Hon irohn Dawkins MP, today released the Government's new policy direction for superannuation and retirement in Australia which will enhance the prospects of a tmancially secure and worry-free retirement for Australian working men and women. It will also increase retirement security for those who rely on the age pension.
It will create a fairer, simpler and more certain system. It will markedly improve the nation's savings pool and thus reduce Australia's call on foreign savings.
The new policy statement Security in Retirement: Planning for Tomorrow Today emppasises the benefits of the Superannuation Guarantee Charge and outlines a raft of changes that provide simpler and fairer rules for retirement income planning.
The policy sets out changes to taxation treatment of superannuation contributions, and reforms preservation guidelines. It changes reasonable benefit limits and outlines new provisions in relation to pensions and annuities, eligible termination payments, death benefits and overseas superannuation funds.
Mr Dawkins stressed, however, that the riew changes cUd not set a completely new range of rules for people who already have superarmuation or are about to retire.
"The framework" said Mr Dawkins, "sets new rules for those Australians who are just beginning, or have recently commenced, their superarmuation plans. It removes many confusing complications from our present superannuation system."
The Treasurer said the superannuation statement entrenched the age pension and superannuation as the pillars of Australia's retirement incomes policy.
"Working men and women on lower and middle incomes will be the main beneficiaries of the Government's superannuation changes and the Superarmuation Guarantee Charge. Indeed, in the future, most retired persons will have an increased retirement income from compulsory saving and a part age pension.
"The SGC vesting will particularly benefit women , who traditionally change jobs more than men over their working lives." .-
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Mr Dawkins said the Government's superannuation strategy not only prepared the ground for stable retirement for millions of Australians, it would also generate a substantial pool of investible funds -Australian funds for investment for Australia.
"In simplifying superannuation and retirement investment arrangements, the Government has given careful consideration to the likely pressures on future Budgets as the population ages. It has also placed considerable weight on how investing now for retirement can reduce our call on overseas funds."
Mr Dawkins said the Government's approach to superannuation was based clearly on considerations of equity and the national interest. He rejected the Opposition's approach which did noiliing to ensure that the great majority of Australians were fmancially secure in retirement.
The Opposition's superannuation position is clearly not administerable. It creates an unfair environment where higher retirement benefits would become accessible only to the wealthy.
For full details of all changes, people should refer to the official statement Security in Retirement: Planning Tomorrow for Today issued today 30 June 1992 and available from all Australian Government bookshops.
Other questions may be referred to one of two telephone hotlines established to field public enquiries about today's statement.
Enquiries about tax treatment of superannuation should be directed to 13 10 20. Enquiries about vesting, preservation and allocated pensions should be directed to 008 811117.
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30 June 1992
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