What’s happening to pensions and super?
The previously announced changes to the Commonwealth Seniors Health Card (CSHC) which would have meant that tax free superannuation pension income would have been included in the income test from 1 July 2009, will not proceed.
The Government will proceed to include amounts that are salary sacrificed to superannuation in the income assessment from 1 July.
The Government has also ruled out the proposal to include the family home in the means test for the pension, made by the head of Treasury, Ken Henry, in his interim report on retirement incomes which was released on budget night.
However his recommendation to link and delay, superannuation payments with the raised retirement age to 65, has been accepted.
The decision was based not only on the Henry report, but also on a recommendation from Jeff Harmer’s interim review of the retirement system which was also tabled on budget night. Dr Harmer is head of the Department of Families, Housing, Community Services and Indigenous Affairs.
