Super – save it now
The following is from the Save Our Super group website which we wish to share with our readers for their support:
“Save Our Super is an apolitical community-based group which makes the public aware of the implications of the superannuation proposals in Budget 2016 and the Opposition’s superannuation policies.
Some of our supporters vote Liberal/National; some vote Labor; others vote for other parties or independents. But we are united in our call for action by the Federal Parliament.
Our Call For Action
Save Our Super calls for bi-partisan superannuation policies from Australia’s major political parties:
- which will grandfather the following Budget 2016 superannuation proposals:
- the introduction of a transfer balance cap of $1.6 million on amounts into the tax-free retirement (pension) phase from 1 July 2017.
- after commencement, if individuals already in retirement as at 1 July 2017 retain balances in excess of the $1.6 million cap and do not transfer the excess out of the retirement phase account, a similar tax treatment that applies to excess non-concessional contributions will be applied to that excess at the top marginal rate of tax (ie 49% for the 2014 to 2016 income years);
- establishment from 3 May 2016 of a life-time non-concessional contributions cap of $500,000 on all non-concessional contributions made since 1 July 2007.
- after commencement, if individuals make contributions that cause them to exceed their life-time non-concessional contributions cap do not withdraw their excess after notification by the Australian Tax Office, the tax treatment that applies to excess non-concessional contributions will be applied to that excess at the top marginal rate (ie 49% for the 2014 to 2016 income years);
- introduction of commensurate measures to defined benefit arrangements;
- removal of the tax exemption on earnings which support Transition to Retirement Income (pension) streams;
- which will grandfather the following Opposition’s superannuation policies:
reduction of the tax-free concession available to people with annual superannuation (pension) incomes from earnings of more than $75,000. From 1 July 2017, future earnings on assets supporting (pension) income streams will be tax-free up to $75,000 a year for each individual. Earnings above the $75,000 threshold will be taxed at 15%. Note: under the proposal, capital gains are to be grandfathered; similar concessions reduced for defined benefit superannuation schemes by removal of the 10% tax offset for defined benefit income above $75,000;
Labor dumped these policies and made an increased tax grab on 26 June 2016 despite saying, just over a year ago, “If elected, these are the final and only changes Labor will make to the tax treatment of superannuation”. Labor has not announced any replacement superannuation policies.
- which will protect all Australians against any legislation which changes the rules of the game for existing superannuation savings and actions taken in reliance on those rules and savings, by including appropriate grandfather clauses.
How To Support Us
Save Our Super welcomes your support for our call. You can support us by contacting us here to let us know that you also care.
Jack Hammond QC:
Save Our Super’s founder is Jack Hammond QC, a Victorian barrister for more than three decades.
Prior to becoming a barrister, he was an Adviser to Prime Minister Malcolm Fraser, and an Associate to Justice Brennan, then of the Federal Court of Australia. Before that he served as a Councillor on the Malvern City Council (now Stonnington City Council) in Melbourne. During his time at the Victorian Bar, Jack became the inaugural President of the Melbourne community town planning group Save Our Suburbs.
In 1972, Jack was an Australia Party candidate for the House of Representatives’ seat of Higgins (the Australia Party was the forerunner to the Australian Democrats). Jack was also an Australia Party Victorian candidate for the Senate. For more than 50 years, Jack has been an active member of Lord Somers Camp & Power House, a community organisation in Melbourne. He has also been active within his local community in a number of voluntary organisations and is at present, President of his local residents’ group.
Declaration of Interest
Jack Hammond QC is in the process of retiring from his barrister’s practice. He will be significantly affected by a number of the Government’s Budget 2016 superannuation policy changes and one of the Opposition’s proposed changes to the superannuation system, if those proposed changes are not grandfathered.”