"Chinatown"-Official media of Chinese Australians

According to the plan promoted by the pension fund delegation and one of the four major banks, the tax-free income after retirement will be limited to 12 yuan per year.

The submissions submitted to the government tax review team support the setting of a limit on the tax-exempt funds used by each Australian to fund retirement life-possibly around 250 million yuan.

The new restrictions will affect about 7 retirees. Once they start using their pensions as old-age pensions, they can continue to receive an annual tax-free income of 12 yuan even if the limit is set. The pension industry’s assessment of the $58,264 required for a "comfortable" retirement has more than doubled.

Australia has 475 retirees with pension savings of 1 million yuan or more. Their average income is 150 million yuan per year, all tax-free.

Prime Minister Alberto promised not to modify pension regulations, but the pension industry is pushing for reforms, arguing that the current system is economically unsustainable.

Westpac supports reform

Westpac, which owns BT Funds Management, said that setting limits is good for management and can help resolve community concerns about the tax benefits for Australians with large pension savings.

"The large number of tax benefits enjoyed by a small number of people with very large pensions has already negatively affected people's perception of the fairness of the pension system." Westpac Bank submitted to the government tax review working group. Said in the submission.

"The government should consider implementing a maximum pension savings limit, such as 250 million yuan, and prevent those who have already retired from further depositing money in their pension accounts."

"Any additional contributions should be kept in a separate accumulation fund, and the income of the fund still needs to pay 15% income tax."

"This approach is easy to manage, can reduce distortions, and can also address people's concerns about fairness."

Accounts deposited into pension funds are subject to a 15% tax, just like pension savings before retirement. But once someone retires and starts to receive a pension, all income and benefits are tax-free.

The main advocate of the 250 million limit is the Association of Superannuation Funds of Australia (Association of Superannuation Funds of Australia), whose board includes industry funds and retail funds.

The Financial Services Council, which represents retail funds, said it has no position on the proposal.

The National Seniors Association (National Seniors) said it is unfair that the government has revised the old-age pension regulations but continues to allow people to enjoy unlimited pension tax benefits.

News compiled from "News Australia"


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