This ensures that more of those who are most in need receive higher levels of support while helping to ensure the sustainability and affordability of the pension system for future generations. The pension reform passed the Senate Government’s with the support of the Australian Greens in the last Parliament. The Opposition voted against these reforms to give more pensioners with modest assets access to the full age pension only to reverse its position in the lead-up to the 2016 election. (See further detail at Recommendation 17) Recommendation 9 paragraphs (5.57–5.58) The superannuation guarantee should be paid on the Commonwealth Paid Parental Leave Scheme. Mechanisms for improving the retirement incomes of carers should be examined. The Australian Government notes this recommendation. The Government is committed to assisting individuals with interrupted work patterns, including women and those undertaking caring responsibilities. From 1 July 2017, the Government extended the spouse tax offset to allow more individuals to be eligible for the 18 per cent tax offset (up to $540) if they make a contribution to the superannuation account of a low income spouse who earns up to $40,000. (see further detail at Recommendation 11) The Government is also allowing people with superannuation balances of $500,000 or less to carry forward their unused concessional cap amounts for a period of five years. From 1 July 2018, this will provide individuals who have been unable to accumulate large superannuation balances, such as carers and parents with interrupted work patterns, with the opportunity to (see further detail at ‘catchup’. Recommendation 11) Recommendation 10 paragraphs (6.14–6.15) The committee recommends that the Australian Government set an objective for superannuation that supports the continuation of a strong three pillar retirement income system. The objective should include reference to women's retirement incomes. The Australian Government agrees in part to this recommendation. The Government has announced that it will, for the first time, enshrine in law that the objective of superannuation is to income in retirement to substitute or ‘provide supplement the Age The objective will help provide greater long-term Pension’. confidence, policy stability and a means of measuring competing superannuation proposals to guide future changes. This was the objective recommended by the Financial System Inquiry, which the Government consulted widely on. This objective was an important anchor for the development of the superannuation package that was announced in the 201617 Budget. A key element of
This ensures that more of those who are most in need receive higher levels of support while helping to ensure the sustainability and affordability of the pension system for future generations. The Government’s pension reform passed the Senate with the support of the Australian Greens in the last Parliament. The Opposition voted against these reforms to give more pensioners with modest assets access to the full age pension only to reverse its position in the lead-up to the 2016 election. (See further detail at Recommendation 17) Recommendation 9 paragraphs (5.57–5.58) The superannuation guarantee should be paid on the Commonwealth Paid Parental Leave Scheme. Mechanisms for improving the retirement incomes of carers should be examined. The Australian Government notes this recommendation. The Government is committed to assisting individuals with interrupted work patterns, including women and those undertaking caring responsibilities. From 1 July 2017, the Government extended the spouse tax offset to allow more individuals to be eligible for the 18 per cent tax offset (up to $540) if they make a contribution to the superannuation account of a low income spouse who earns up to $40,000. (see further detail at Recommendation 11) The Government is also allowing people with superannuation balances of $500,000 or less to carry forward their unused concessional cap amounts for a period of five years. From 1 July 2018, this will provide individuals who have been unable to accumulate large superannuation balances, such as carers and parents with interrupted work patterns, with the opportunity to ‘catchup’. (see further detail at Recommendation 11) Recommendation 10 paragraphs (6.14–6.15) The committee recommends that the Australian Government set an objective for superannuation that supports the continuation of a strong three pillar retirement income system. The objective should include reference to women's retirement incomes. The Australian Government agrees in part to this recommendation. The Government has announced that it will, for the first time, enshrine in law that the objective of superannuation is to ‘provide income in retirement to substitute or supplement the Age Pension’. The objective will help provide greater long-term confidence, policy stability and a means of measuring competing superannuation proposals to guide future changes. This was the objective recommended by the Financial System Inquiry, which the Government consulted widely on. This objective was an important anchor for the development of the superannuation package that was announced in the 201617 Budget. A key element of