In short
This submission is divided into four chapters:
- discussion of the key determinants of retirement living standards and issues around their measurement
- main features of the policy and institutional context in which the retirement income system functions
- results of quantitative modelling of the adequacy of retirement incomes
- research undertaken by the Treasury highlighting the concessionality of the taxation arrangements applying to superannuation in Australia
This submission discusses the key features of Australia’s retirement income system, and the policy and institutional context within which it functions. Reflecting Treasury’s core portfolio responsibilities, the main focus of the submission is on the implications for retirement incomes of the current superannuation framework and the taxation regime applying to superannuation. The submission discusses the determinants of retirement living standards and issues associated with their measurement, and also presents the results of quantitative analysis of the adequacy of retirement incomes under the combination of the current Superannuation Guarantee and Age Pension arrangements. The submission does not endeavour to address specific issues associated with the aged and health care needs of older Australians, these issues falling more directly within the portfolio responsibilities of the Department of Health and Aged Care.