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| Super in review Volume 49, No. 03, March 08, 2007 |
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The Minister Assisting the Minister for Defence, Bruce Billson, announced on February 27 that government has commissioned an independent review of military superannuation. The review will be led by Andrew Podger, a former Public Service Commissioner with strategic Defence experience. He will be assisted by Dr David Knox, a superannuation expert, and AIRCDRE Lee Roberts from the Military Superannuation Project, who will provide ADF-specific input. Mr Billson said the review intended to complement a range of initiatives aimed at enhancing ADF recruitment and retention. Serving and former ADF members could be assured there would be no detriment to their accrued superannuation entitlements, regardless of the review’s outcome. “Superannuation benefits are a key component of the total remuneration package for ADF members and the overall aim of the independent review is to ensure that the military schemes continue to meet the needs of our people and reflect contemporary superannuation standards in a sustainable manner,” he said. Since the last review of military superannuation in 1990, there had been many changes in the wider community superannuation environment and in the demographics and career aspirations of ADF members. “It is an appropriate time to review the military schemes to ensure that superannuation benefits are being provided in the most effective and sustainable manner and reflect the needs of ADF members and their families,” he said. Members will be able to contribute through their Service personnel offices, by consultations at major Defence facilities or via the Defence website. The review team will also consult with representative ex-Service organisations, the wider Defence community, superannuation industry bodies and other government departments. The report will be completed in mid-2007 and submitted to the government for consideration. Mr Billson welcomed members’ submissions on the terms of reference. Information about the review, terms of reference and consultation arrangements are available on the Defence website: www.defence.gov.au/militarysuperreview New rules will bring benefits By Heather Gill, Acting Director Superannuation ARE you considering retirement or electing to receive a retention bonus or benefit that will take effect on July 1? If the answer is yes, you need to be aware of proposed changes to superannuation legislation. Seeking financial advice before you elect to take a retention bonus or other benefit will help you decide how to gain the most from your bonus. Government has introduced new superannuation Bills aimed at simplifying and streamlining superannuation. The proposed Bills involve changes to retirement incomes and superannuation contributions. Some of them include: - Abolishing Reasonable Benefit Limits ; - New caps for pre- and post-tax contributions; and - New tax rules for retirement benefits. It is a good idea to seek timely financial advice, especially if your personal financial situation is expected to change after July 1. If you are considering taking a retention benefit or retiring, superannuation is one consideration a financial adviser can help you with. Perhaps you are considering salary-sacrificing some or all of the benefit into a superannuation fund. The proposed super changes include new tax rules for pre-tax (salary-sacrificed) contributions. - The official Government website for simplified superannuation is www.simplersuper.treasury.gov.au - The ‘superannuation’ link on the Australian Securities and Investment Commission’s ‘fido’ website is at www.fido.gov.au |
