These issues must be considered and resolved if such a proposal was to be implemented by a future government and any proposal will need to be followed up by genuine and meaningful consultation to work through implementation issues. Whether the measure announced by the ALP ever sees the light of day, we don’t know. However, what we can be certain about is that change in the long term will occur to address the Budget deficit and redistribution of superannuation tax concessions. 

The Federal Government released its discussion paper yesterday on the Australian taxation system. Titled ‘Re: think’, the paper provides an insight into what the Government perceives as Australia’s largest taxation challenges rather than inform the public of future policy directives. Although the document does not provide a clear indication of how the taxation system will change, it does contain some interesting data on the Australian taxation system.

Preservation age is the age a member must reach before their super can be accessed. The main catalyst for penning this wealth pipeline was to remind our clients that as of 1st of July 2015, the preservation age will commence to increase from age 55 up to 60.

It is a common misconception that superannuation interests automatically form part of your estate upon your death. This is not necessarily the case. Ultimately, the superannuation fund’s trustee determines where a superannuation death benefit is paid. Depending on the superannuation fund, it may be possible to fetter the trustee’s discretion with a binding death benefit nomination.

The Financial System Inquiry (FSI) which is commonly referred to as the Murray Report was released by Joe Hockey on the 7th of December.  It contained 44 recommendations for the Government to consider.  The Government will undertake a public consultation seeking stakeholder views in order to assist them in shaping their response.  The Government has stated that it expects to complete its review by March 2015.