Bill Shorten will preside over a superannuation roundtable that will meet next month to try and ensure that Australians have enough money to retire.
There will be 17 people who will meet on February 16 or 17 for the first of as many as five meetings, says Pauline Vamos, chief executive of the Association of Superannuation Funds of Australia Ltd., who will be on the Minister for Financial Services and Superannuation’s roundtable.
“The roundtable will consider compliance cost issues raised by the superannuation industry in relation to the new higher concessional contributions cap for individuals aged 50 and over who have less than $500,000 in superannuation,” says a statement from Shorten’s office.
It “will examine proposals to expand options in the drawdown phase as well as appropriate offsetting savings,” the statement says.
Superannuation has about $1.3 trillion in assets under management. The mandatory superannuation contribution is set to be raised to 12 per cent from 9 per cent from July 1, 2013 to July 1, 2019 in an effort to ensure Australians have enough money to retire.
“Australia has an aging population,” says John Brogden, chief executive of the Financial Services Council, who is a member of the roundtable.
“In the next 10 to 20 years the number of people retiring will increase and the number of people going to the workforce will decrease putting more pressure on the tax base,” says Brogden.
The government plans to refund the 15 per cent of contributions tax for individuals with income up to $37,000.
Shorten has also formulated a plan to introduce from July 1, 2012 a $50,000 concessional contributions cap for individuals aged 50 years of age and over who have less than $500,000 in superannuation.
The government wants from July 1, 2013 to abolish the 70 year age limit on the superannuation guarantee.
“We’re trying to encourage people to put as much in superannuation as possible,” says Vamos.