Government puts super back on the agenda
The Assistant Treasurer, Helen Coonan, says the Government will push ahead with plans to reform superannuation in a bid to deliver on its election promises.
Coonan yesterday announced the new push for the reforms by stating the Government was committed to its superannuation policies which its says “will enhance the opportunity for Australians to save for their retirement”.
"A sense of ownership is vitally important to encouraging people to think about their superannuation and plan for retirement," Coonan says.
"The Government is, therefore, committed to giving superannuation fund members the right to decide where their superannuation contributions go. We will give them the right to move their superannuation savings from one fund to another, if they wish to do so, through the implementation of our Choice and Portability policies.”
As part of these moves regulations will be released this week covering portability with industry consultations to take place before the regulations are gazetted in June.
Details will also be released of changes to the Choice of Superannuation Bill which is up for debate in the spring sitting of Parliament. The changes include the default fund being chosen by the employer, a reduction in penalties and a streamlined process for employee’s choosing a superannuation fund.
Both choice and portability proposals will be promoted through a $14 million education campaign as the Government presses ahead with plans to allow the splitting of superannuation contributions between spouses and the reduction of the superannuation surcharge from 15 per cent to 10.5 per cent over three years.
AUTHOR
Jason Spits
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