Rice Warner: Superannuation myths unbundled

11 June 2015 15:05

Several pervasive myths are obscuring a clear picture of sensible reform in superannuation in Australia today. These myths have created a monumental ball of string that should be unbundled. Once sorted, we should kill off the myths. Otherwise, as Michael Rice observes, Australia will be set up for poor retirement outcomes and superannuation policy driven by misinformation.

Australia’s superannuation system has three key building blocks:

the Age Pension
our mandatory employer contributions (now 9.5% of salaries)
tax concessions to encourage voluntary contributions.

Over decades, many changes to all three have created uncertainty for people saving for their retirement.

Prime Minister Abbott tried to bring stability with his recent Captain’s Call that there will be no further changes under his government. Unfortunately, this has led to confusion within his Cabinet and the superannuation industry as there are several reforms currently being considered. These include the recommendations from the National Commission of Audit, the Financial System Inquiry, Treasury’s Retirement Income Review and the forthcoming Tax White Paper Task Force.

It is difficult to see how we can get meaningful reform without change to tax concessions and to the eligibility for the Age Pension. Of course, change brings some winners and some losers – and those in the latter group all vote!

READ ALL THE MYTHS

Source: Rice Warner

Tax changes will make property disproportionally popular with SMSFs: FAAA

2026 Licensee Summit

How a disappearing adviser exposed vulnerabilities in the governance chain

2026 Licensee Summit

‘Data war’ a major roadblock to big productivity gains for advisers

Regulation

CALI calls for insurer lead generation carve-out

Advice

SMSF

Tax changes will make property disproportionally popular with SMSFs: FAAA

CGT changes proposed in this year’s budget could lead to more high-pressure sales tactics that push people into SMSFs, according to the Financial Advice Association Australia. While the association welcomes superannuation being exempted from any changes, it could mean property in SMSFs becomes disproportionately attractive.

Chris Dastoor

June 15, 2026