News: Federal Budget 2009: Australia's Future Tax System review panel recommendations

In addition to the Budget, the Government released the report by the Australia’s Future Tax System review panel (chaired by Ken Henry). The press release provides the following summary of recommendations:
• Maintaining the Superannuation Guarantee at 9%, not extending the Superannuation Guarantee to the self employed and retaining the $450 per month threshold,
• Gradually increasing the Age Pension age to 67 years,
• Gradually aligning the age at which people can access their superannuation savings (the preservation age) with the increased Age Pension age,
• Improving the fairness and coherence of the pension means tests, possibly through a single test, and improve incentives to work beyond retirement age,
• Reducing the complexities resulting from the interactions between the tax-transfer system and the aged care sector,
• Maintaining tax assistance to superannuation but improving the fairness of concessions for contributions, including by broadening access to them, and considering whether the current cap on concessions is appropriate,
• Improving the ability of people to use their superannuation to manage longevity risk, and
• Improving the awareness and engagement of individuals with the retirement income system.

At this stage, the Government has only responded to two of the recommendations:
• Supporting a phased increase to the Age Pension age
• Reducing the concessional contribution caps.