Need to know

Retirement Income Review report released

The Government released the Retirement Income Review which assessed the effectiveness of the three pillars of the retirement income system. These pillars being Australia’s Age Pension, compulsory superannuation and voluntary savings.

A copy of the Retirement Income Review report can be found here.

The Final Report will likely influence future government policy on retirement.

In his media release, the Treasurer notes several observations including:

• The Age Pension, compulsory superannuation and voluntary savings results in most Australians achieving adequate retirement outcomes.
• More efficient use of savings in retirement can have a bigger impact on improving retirement income than increasing the Superannuation Guarantee (SG).
• The weight of evidence suggests an increase in the SG rate will result in lower wages growth, impacting standards of living.
• There are a number of ways that individuals can significantly boost their retirement incomes without having to increase their superannuation contributions, including more effectively drawing on superannuation assets, achieving better-after-fee returns and accessing equity in their home.

Coronavirus Supplement: extended but reduced

In a joint statement with the Prime Minister, Anne Ruston confirmed both existing and new JobSeeker payment recipients will be paid the Coronavirus Supplement at a rate of $150 per fortnight from 1 January 2021 through to 31 March 2021 on top of their base rate of payment and other supplements they are eligible to receive.

A link to the media announcement can be found here.

This income test is applied to the JobSeeker Payment only. If a client is eligible for at least a part JobSeeker Payment they will receive the full Coronavirus Supplement (currently $250 per fortnight and reducing to $150 per fortnight from 1 January 2021 to 31 March 2021).