As many members will know from media reports, the National Commission of Audit report was released last week and included references to superannuation and the age pension.
Note this is a report to Government and none of the recommendations are law. We will keep you informed as the Government responds to this report.
Some of the key points that may affect our members, if the Federal Government accepts them, are:
- changing the age pension indexation to a 28% of average weekly earnings benchmark over a 15 year transition period
- increasing the age pension starting age to 70 years by around 2053
- age pension eligibility to be based on a single income test with deeming on more assets (ie the current assets test to be abolished) from 2027-28
- including the value of the primary residence (above $750,000 for a couple or $500,000 for a single) in the new means test from 2027-28
- increasing the income test withdrawal rate to 75% (currently 50%) from 2027-28
- increase the super preservation age to 5 years lower then the age pension age
- extend the gradual increase of preservation age to reach 62 by 2027
You can read the full report given to Government at the National Commission of Audit site.