Federal Government says Labor super policy lacks originality

The Federal Government has accused the Australian Labor Party of pilfering its superannuation policies, following yesterday’s announcement by the Opposition of the first tranche of its new super policy platform.

Commenting on the ALP’s policy announcement to theAssociation of Superannuation Funds of Australia(ASFA) conference in Brisbane, the Assistant Treasurer, Senator Helen Coonan says the Opposition has ‘borrowed heavily’ from the Government’s approach to choice of fund and the consolidation of superannuation accounts.

The Opposition Treasury spokesman, Mark Latham yesterday joined with the Opposition spokesman on Retirement Incomes, Senator Nick Sherry to announce a policy aimed at simplifying the existing superannuation regime through automatic consolidation of superannuation accounts, choice of fund, standard reporting formats and a reduction in contributions tax.

However the Labor policy stated choice of fund would not apply to those employed by small business because of its likely high impact on administration.

Senator Coonan says the “carve out” of those working for small business represents “outrageous discrimination”.

However the Labor policy was broadly welcomed by the superannuation industry, with theInvestment and Financial Services Association(IFSA) praising both the proposal to reduce the contributions tax and the Opposition’s support for choice of fund.

IFSA chief executive officer Richard Gilbert says it welcomes Labor’s identification of the contributions tax as a major disincentive to retirement savings.

“IFSA commends the Labor proposal for a reduction in the contributions tax from 15 per cent to 13 per cent. We further welcome Labor’s support for the concept of choice and remain hopeful that the major parties can come to the table and negotiate a choice regime for the benefit of all Australians saving for their retirement,” he says.

The reduction in the contributions tax was similarly welcomed by ASFA, with chief executive Philippa Smith saying her organisation has been consistently arguing for its removal.

TheFinancial Planning Association(FPA) also welcomed the Opposition’s policy announcement, particularly with respect to choice of fund.

However the FPA’s acting chief executive, June Smith challenged the Opposition to support the Government’s choice of fund legislation and ensure its passage before Christmas.