Mercer
Search
   
Consulting. Outsourcing. Investments.
Henry Tax Review

Contact: Mercer Feedback

E-mail this page Print this page

Mercer's submissions to the Henry Tax Review

Date: 12 May 2009

 

QUICK LINKS

Securing Retirement Incomes

Cooper Super Review

Henry Tax Review

Federal Budget 2009

Budget Bytes

Multimedia

Download the full report

The broad Henry Tax Review has provided a once-in-a-generation opportunity to also review Australia’s retirement income system and ensure more Australians are able to save for a comfortable retirement. In fact, at Mercer we believe we have not just an opportunity, but a responsibility to do so.

 

We believe Australia’s three pillar retirement system will remain fundamentally flawed and inadequate until all three pillars - the age pension, compulsory super, and voluntary savings - are better integrated.

 

Read our white paper summarising Mercer’s key recommendations to the Henry Tax Review and Harmer Pension Review.

 

For further details read Mercer’s full submissions:

 

Document Retirement Income Review
Document Harmer Pension Review
Document Henry Tax Review

 

Or listen to Dr David Knox, Worldwide Partner in Mercer’s retirement, risk, and finance business, discuss Mercer’s overarching approach and key recommendations in this video.

 

Play vodcast

 

Video Download the vodcast (30MB)

Summary of Mercer’s Recommendations to the Australian Government:

Sqaure

Improve the adequacy of Australia’s retirement system

  • Expand coverage of the SG system
  • Introduce soft compulsion for member contributions
  • Enable more Australians to receive co-contributions
  • Provide simpler incentives to contribute additional savings to superannuation - e.g. tax deductibility
Sqaure

Improve the equity of Australia’s retirement system

  • Introduce a tax offset for low income earners
  • Remove tax on death benefits
  • Introduce tax deductibility for all contributions - Make personal contributions tax deductible (rather than having to arrange salary sacrifice programs) with a refundable tax offset for low income earners.
Sqaure

Improve the sustainability and longevity of Australia’s retirement system

  • Encourage people to work past pension age - Exclude income from paid employment from income test
  • Gradually increase the pension age gradually from 65 to 67
  • Introduce a universal pension at the age of 85
  • Ensure a portion (eg. 30%) of any super benefit must be taken in the form of an income stream payable until at least age 85
Sqaure

Create a simpler system

  • Replace the current age pension bonus system to make it simpler and more sustainable
  • Remove complexity and red tape for employers