The Treasurer has announced the release of the report of Australia’s Future Tax System Review Panel into retirement incomes.

The report finds that Australia’s three‑pillar retirement income system – consisting of the means tested Age Pension, compulsory saving through the superannuation guarantee and voluntary saving for retirement – should be retained.

The Panel recommends:

• maintaining the superannuation guarantee at 9 per cent, not extending the superannuation guarantee to the self employed and retaining the $450 per month threshold;
• gradually increasing the Age Pension age to 67 years;
• gradually aligning the age at which people can access their superannuation savings (the preservation age) with the increased Age Pension age.

The final version of the panel’s report will be released in December 2009.