Keating slams contribution caps
|
|
Fourteen years after leaving office, former Prime Minister Paul Keating has again waded into public debate, criticising the Government for its decision to reduce concessional contributions to $25,000 for those younger than 50, describing it as a “dreadful decision”.
Speaking on ABC radio, Keating said while the Rudd Government deserved to be re-elected for its economic management alone, the decision to cut the superannuation concessional contribution rate in half and increase the age pension were decisions that were sending the wrong message.
“So if you're a punter out there you say, 'Look, the Government's given me the message: Don't bother saving any more. We'll just rely on the pension.'”
Of the decision to cut concessions, he said: “They should reverse it, quickly. You know, shocking decision in my opinion. Short-sighted. Bad.”
Keating also offered the hint that there might be some division within the Government on superannuation policy. He said he knew lifting the superannuation guarantee to 12 per cent from 9 per cent was something Treasurer Wayne Swan and the Superannuation Minister, Chris Bowen, were interested in.
“It's their job I think to convince the Prime Minister that there's a good economic case and all good economic reasons for taking the 9 per cent to 12,” he said.
But despite his criticism of the Government on superannuation policy, Keating saved his most venomous attack for the Opposition leader, calling Tony Abbott an “intellectual nobody”, and of the Opposition he said, “You wouldn't trust this mob with a jam jar full of five cent bits”.
AUTHOR
Mike Taylor
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
