Popular products designed to artificially trim superannuation balances and max out pension entitlements will punch a $480 million hole in the federal budget between now and 2036, costing taxpayers another $250 million the year after and doubling from there, according to Treasury forecasts.
The projections, relayed to The Australian Financial Review , will put the $4.8 trillion sector on notice for an imminent crackdown . Wealth managers are braced for changes to these schemes – widely labelled as “pension bonus” or “boost” offerings – which make up nearly $21.5 billion of assets under management at prominent groups such as AMP, MLC and Colonial First State.
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