Balance sheet repair trumps higher SG
The Coalition will have to repair the nation's balance sheet before it can address several key issues facing Australia's superannuation system, according to Shadow Financial Services Minister Mathias Cormann (pictured).
If it returns to power at the next election, the Coalition won't have much room to move in the short-term because the budget is in such bad shape, Cormann told the Small Independent Superannuation Funds of Australia (SISFA) conference yesterday.
Cormann was speaking immediately after a presentation by Assistant Treasurer and Financial Services Minister Bill Shorten, in which Shorten questioned how the Coalition would boost national savings if it continued to oppose a phased increase in the superannuation guarantee (SG) from 9 per cent to 12 per cent.
After also reiterating the likely changes to the self-managed super fund sector from Stronger Super changes, and answering several questions from the floor regarding the Government's intentions around raising the concessional contributions caps, Shorten immediately left the conference.
"Thank you to SISFA for bringing Bill Shorten and I together in one room - even though he's again missed the opportunity to hear what the Coalition's views are on superannuation policy. I'm sure the day will come," Cormann began.
He then added that the Henry review recommended leaving the SG at 9 per cent, and restated the Coalition's intentions to increase voluntary savings rather than compulsion by making concessional contributions more attractive.
He also expressed a need to urgently address the penalties for inadvertent breaches of concessional contributions caps and find an efficient way to allow people to correct those mistakes.
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