Proposed tax changes for retirees

In the wake of the fallout from the global financial crisis, the government is considering proposals that would reduce the heavy dependence of retirees on the share market. Denise Honey, executive director with Pitcher Partners, gives an overview of the anticipated changes.

Introduction

As the population of Australia ages, taxation policy for retirees has become a hot political issue.

A series of changes made by the former Howard government has made superannuation one of the most tax-effective savings environments. This has encouraged older Australians to pump enormous amounts of money into super.

Much of this money has been invested in the share market, but the recent turmoil created…