Superannuation and standards of living in retirement

Superannuation and standards of living in retirement

Report on the adequacy of the tax arrangements
for superannuation and related policy

December 2002

© Commonwealth of Australia 2002

ISBN 0 642 71202 6

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View the report as a single document - (PDF format) - 4 MB

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TABLE OF CONTENTS

Membership of the Committee (PDF format)

Terms of Reference (PDF format)

Preface (PDF format)

Executive Summary (PDF format)

    Adequacy
    Equity
    Integration
    Simplicity
    Other issues

Recommendations (PDF format)

List of Abbreviations (PDF format)

List of Tables, charts and figures (PDF format)

PART I - INTRODUCTION (PDF format)

Chapter 1 - Introduction (PDF format)

    Terms of reference for the inquiry
    Background to the inquiry
    Conduct of the inquiry
    Main issues arising in the inquiry
    Acknowledgments

PART II - ADEQUACY (PDF format)

Chapter 2 - Identifying and Quantifying Adequacy (PDF format)

    Introduction
    Background
    Objectives of the retirement incomes system
    Determinants and measures of living standards in retirement
    What is an appropriate target?
    What will the current arrangements provide?
    Access to RIM models

Chapter 3 - Closing the Adequacy Gap (PDF format)

    Introduction
    Additional compulsory contributions
    Voluntary contributions
    Widening access to superannuation as a savings vehicle

Chapter 4 - Factors Inhibiting Adequacy (PDF format)

    Introduction
    The impact of front-end taxes on adequacy
    The impact of fees and charges on adequacy
    The impact of rising household debt on adequacy

Chapter 5 - Adequacy for Baby Boomers (PDF format)

    Introduction
    Options to improve adequacy

Chapter 6 - Other Adequacy Issues (PDF format)

    Introduction
    The self-employed
    Member protection
    $450 earnings threshold 61
    People with broken work patterns
    Overall conclusions – adequacy

PART III - EQUITY (PDF format)

Chapter 7 - Equity and Tax Concessions (PDF format)

    Introduction
    Income or expenditure approach
    The level of tax concessions
    Annual and whole of life equity issues

Chapter 8 - Annual Taxation Measures (PDF format)

    Introduction
    Generic fund level taxes
    Rebates for individuals rather than generic fund level taxes
    Age-based deductible contribution limits

Chapter 9 - The Surcharge (PDF format)

    Introduction
    Background information
    Equity considerations
    Application to defined benefit funds
    Administration issues

Chapter 10 - Whole of Life Taxation Arrangements (PDF format)

    Introduction
    Reasonable benefit limits
    Taxation of end benefits
    Overall conclusions - equity

PART IV - INTEGRATION (PDF format)

Chapter 11 - Health and Aged Care (PDF format)

    Introduction
    Australia’s ageing population
    Health care expenditure in Australia
    Residential aged care expenditure in Australia
    Alternatives for reform of the health system

Chapter 12 - Income Support (PDF format)

    Introduction
    The age pension
    Other income support
    Extended working lives
    Double dipping
    Retirement income streams
    Accessing the wealth in housing assets
    Overall conclusions - integration

PART V - SIMPLICITY (PDF format)

Chapter 13 - Simplicity (PDF format)

    Introduction
    The legislative and regulatory framework
    ‘Grandfathering’ arrangements
    The work test for making voluntary contributions
    Account consolidation
    Education
    Overall conclusions - simplicity

PART VI – OTHER ISSUES (PDF format)

Chapter 14 - Other Issues (PDF format)

    Introduction
    Other savings vehicles
    Indexation of Commonwealth superannuation pensions
    APRA’s powers
    Overall conclusions – other issues

ALP Additional Comments (PDF format)

Supplementary statement - Australian Democrats Senator John Cherry (PDF format)

Appendix 1 - Submissions (PDF format)

Appendix 2 - Public hearings (PDF format)

Appendix 3 - Documents tabled, incorporated or received as exhibits (PDF format)

Appendix 4 - Report on modelling assumptions from the Institute of Actuaries of Australia (PDF format)

Appendix 5 - Objectives of the superannuation system (PDF format)

Appendix 6 - Previous proposals to increase the Superannuation Guarantee (PDF format)

Appendix 7 - Treasury ‘cameo’ modelling (PDF format)

Appendix 8 - Taxation treatment of superannuation (PDF format)

Appendix 9 - International pension taxes (PDF format)

Appendix 10 - Operation of superannuation taxes on end benefits – some examples (PDF format)

Appendix 11 - Pension income and assets test arrangements (PDF format)

Appendix 12 - Other government concessions and allowances for pensioners and self-funded retirees (PDF format)

Appendix 13 - Grandfathered/sunset provisions relating to taxation of superannuation (PDF format)

Appendix 14 - Tax treatment on savings vehicles (PDF format)

Appendix 15 - Chronology of superannuation policy announcements, events and inquiries (PDF format)

Appendix 16 - List of committee reports 1991 - 2002 (PDF format)