Australia Tax Review Touts Longevity Income Products, Tax Cuts
Australia's government-appointed tax review panel led by Treasury Secretary Ken Henry proposed the development of longevity income products such as life annuities to lessen government's budgetary strain due to an aging population.
Although Australia has superannuation as a retirement fund, the current retirement income system does not provide the products that would allow a person to manage longevity risk, according to the Henry tax review. "This is a structural weakness," said Henry in the report.
The tax proposal has a key implication for the insurance industry related to develop longevity risk products such as life annuities in Australia, said Michael Sherris, professor of actuarial studies at the University of New South Wales.
The government should support the development of longevity products and better facilitate their provision by the private sector, according to the Henry review. "This could be achieved through issuing long-dated bonds and removing rules that restrict
