Powered by MOMENTUM MEDIA
subscribe to our newsletter
Rice Warner calls for withdrawal values to be slashed

Rice Warner calls for withdrawal values to be slashed

Katarina Taurian
09 February 2016 — 1 minute read

Rice Warner has called on the government to reduce the current level of minimum withdrawal values by 25 per cent to 50 per cent, in a bid to allow members to defer drawdowns during periods of market downturns.

In its pre-budget submission for 2016, Rice Warner said deferral of withdrawals will assist the retirement benefit to last for a longer period during retirement.

Rice Warner has also called on the government to change the tax rate payable on the death of a pensioner without dependants to be a flat 15 per cent plus Medicare, equalling 17 per cent in total.

“This would eliminate recontribution strategies, which simply avoid tax,” Rice Warner stated.

Rice Warner has also called on the government to consider imposing a lifetime cap on non-concessional contributions of $500,000.

The firm noted this is a “considerable reduction” from the current allowance of $180,000 per year.

The government should also consider re-evaluating the transition to retirement pension structure, Rice Warner added.

“These favour high-income earners even though they were intended to help middle-income Australians ‘catch up’ their superannuation later in their careers,” the company said.

Rice Warner has also reiterated calls to allow employers to pay additional superannuation contributions for their female employees.

Read more:

Drive for property in super takes a hit

Perpetual launches fund with SMSF in its sights

Rice Warner calls for withdrawal values to be slashed
smsfadviser logo
join the discussion

Do you think the government should reinstate the accountants’ exemption for SMSF advice?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super