The Alliance for a Fairer Retirement System
The Alliance for a Fairer Retirement System is an informal collaboration of various associations that share a mutual interest in promoting reforms to Australia’s retirement system to achieve a fairer system for all. The Alliance was formed in response to Labor’s proposal to disallow refunds of excess franking credits for a range of retirees and shareholders as this proposal. Together we represent the millions of senior Australians, shareholders, self-funded retirees and those planning a sustainable retirement.
ASA is a founding member of the Alliance. Other members include the Self Managed Superannuation Fund Association, National Seniors Australia, Australian Listed Investment Companies Association, Self-managed Independent Superannuation Funds Association, Stockbrokers & Financial Advisers Association, Association of Independent Retirees and Australian Investor Association.
The Alliance is of the view that an important objective for government is to encourage older Australians to save for retirement and to support the majority of retirees (58%) who take pride in being either fully or partly self-funded in retirement. This majority includes many self-funded retirees and almost half of the current 1.1 million SMSF trustees who are either in the pension phase, or who will move into that phase shortly.
Objectives of the Alliance
The ALP’s stated policy to remove the cash rebates on franking credits for those who pay no tax will impact directly on many retirees on modest incomes and is a disincentive to saving for retirement. It infringes on the principles held by the Alliance for a Fairer Retirement System of adequacy, sustainability, certainty and fairness.
More detail on these principles can be found on the Alliance’s website.
Alliance spokesperson Professor Deborah Ralston notes that the Alliance will contribute substantially to the debate on improving retirement outcomes for all Australians. The Alliance is keen to promote evidence-based research and policy development and increased bipartisan support to complete the development of Australia’s retirement income system.
The Alliance is keen to develop or promote research that can be considered for policy development. Research will be added to this page over time.
Rice Warner research on removing the refundability of franking credits
The Fairer Retirement Summit
ASA is a founding member of the Alliance for a Fairer Retirement System which held a Summit at the end of October in Sydney. The Summit explored the implications of the proposal from the Australian Labor Party (ALP) to change the policy on refundable franking credits, as well as broader issues relevant to retirement.