Govt defends cost of super changes
The superannuation changes announced in the Federal Budget, including the lifting of the super guarantee to 12 per cent, will cost the Government $2.4 billion over the next four years, according to the Minister for Financial Services, Chris Bowen,
In a ministerial statement delivered to the Parliament this week, Bowen said those who suggested the changes to superannuation wouldn’t cost the Government any money did not understand the facts or, worse still, chose to wilfully misrepresent those facts.
“Increasing the superannuation guarantee, refunding the tax paid on superannuation for low income earners and raising concessional contributions for those aged 50 or over with lower superannuation savings reduces the tax burden on working Australians,” he said. “As such, these measures will cost around $2.4 billion over the next four years.”
Bowen also claimed that it was the level of Australia’s superannuation savings that had helped the country weather the global financial crisis.
“In the 2009 financial year, at a time when liquidity was being rapidly withdrawn from markets around the world, Australia remained an attractive place to raise capital,” he said. “Australian listed companies raised $90 billion of equity. Investor support, including from Australian institutional investors, helped to restore the capital base of companies that together employ over 1.6 million Australians.”
“To put this in context, at the height of the financial and liquidity crisis, a greater proportion of the total market capitalisation of listed companies was raised in Australian than in any other major economy,” Bowen said.
AUTHOR
Mike Taylor
Recommended for you
A former Northern Territory financial adviser has received a seven-year ban from ASIC, having been convicted of supplying dangerous drugs and receiving or possessing the proceeds of their sale.
Both Bain Capital and CC Capital have made revised bids for Insignia Financial after completing a period of due diligence.
The advice industry has reached triple-digit gains for the calendar year to date, with two licensees seeing gains of five during the week.
Targeting market leadership in digital advice, Bravura’s digital solutions are now available to over 6 million superannuation fund members.
