Superannuation Editorials

An important announcement by the government on 30 June 2010 allowing for a 50% reduction in the minimum drawdown permitted for certain income streams during 2010-11 is excellent news for self funded retirees; notwithstanding the relative lateness of the announcement.

An important announcement by the government on 30 June 2010 allowing for a 50% reduction in the minimum drawdown permitted for certain income streams during 2010-11 is excellent news for self funded retirees; notwithstanding the relative lateness of the announcement.

Hard on the heels of the Cooper review's release on SMSFs last week we saw the government's response to the long awaited Henry review. The Cooper review's Self Managed Super Solutions reflects a balanced approach to a system that ‘ain't broke'.

The Cooper Review made public another preliminary report in which it proposed a shake-up of the 'back office' arrangements for public superannuation. We fully endorse this as it should drag the ‘back office' function into the 21st century! In our view what's proposed is a dose of common sense and nothing too extreme.

Following last month’s closing date for submissions to the final phase of the Cooper review we might now be tempted to turn the page, settle back to our day-to-day duties and await the final outcome of recommendations expected by the end of June. But let’s spare a thought for the committee. They must now pore over what seems like a mountain of ideas from the public submissions.

Whilst the outgoing government deserves much credit for Better Super, the incoming Prime Minister also deserves some mention.

SMSF trustees have an important responsibility to carry out their duties to safeguard the interests of members' retirement savings.

In last month's editorial we reminded members that limited time remained for those SMSF trustees intending to commence a strategy of using market linked pensions for reducing the asset test assessment of their superannuation savings for Centrelink purposes.

Whilst most of the new superannuation rules were in place on 1 July 2007, the final piece in the Simpler Super puzzle will fall into place on 20 September 2007.

Following the recent superannuation changes introduced through Simpler Super, a Senate Finance and Public Administration Committee has just tabled its report into the provisions of the Superannuation Legislation Amendment Bill 2007