In this guide
AustralianSuper calls for simpler retirement system
AustralianSuper, the largest super fund in Australia with $316 billion in funds under management, says Australia needs a simpler and much more member-centric retirement system.
“Many AustralianSuper members are telling us that they want flexibility and simplicity in the retirement income system as they define what retirement looks like for them and have confidence as they enjoy this next stage of their lives,” AustralianSuper chief officer retirement Shawn Blackmore says.
In its submission to the government’s Superannuation in Retirement consultation, AustralianSuper suggested reforms to the system that include implementing an ‘account for life’, so that Australians can move seamlessly between work and retirement; and allowing super funds to automate Age Pension applications and integrate with a member’s superannuation savings.
“As the relationship between work and retirement evolves, many members are telling us they are struggling to navigate the complexities of a fragmented system, where the interplay of income from multiple income sources, be it from work, government benefits or private savings, is challenging to manage,” Blackmore said.
“Research suggests less than half of people apply for the Age Pension immediately when eligible, with many members missing out on their full Age Pension entitlement by delaying their application.”
ATO reminds SMSFs to keep good records
The Australian Taxation Office (ATO) has issued a reminder to self-managed super funds (SMSFs) to keep on top of their records, suggesting that this will be a focus for the regulator this year.
In the reminder, the ATO outlines the many benefits of applying good record-keeping habits, along with the simple fact that it is also a legal requirement.
The ATO says the benefits of good record keeping include:
- Making it easier to provide information to your SMSF professionals for independent audit and annual return preparation
- Helping reduce audit and administration costs
- Avoiding the risk of receiving administrative penalties, which are personally payable by each individual trustee or the corporate trustee of the fund.
“Remember, even if you use a super or tax professional to administer your SMSF, each trustee is still responsible for good record keeping,” the ATO says.
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