Budget poses risks to superannuation

A senior Queensland academic has joined with financial service spokespeople and the Federal Opposition in warning against further changes to superannuation in tonight's Federal Budget.

Professor Michael Drew of the Griffith University Business School warned that today's budget might prove a giant step backwards against the reforms to superannuation that had taken place over the past three years.

Commenting on suggestions that the Budget would contain changes to the superannuation co-contribution and taxation arrangements for higher income earners, Drew said the 2009 Budget risked being the dawn of "complexified super".

He said this was in contrast to three years ago when the former Federal Treasurer, Peter Costello, introduced measures that had effectively streamlined and simplified superannuation.

"Fast forward to the 2009 Federal Budget and the proposed policy framework takes giant steps backwards against the reforms completed over the past three years," Drew said.

He said the changes being flagged in the Budget were regressive and added yet more layers of complexity to Australia's retirement arrangements.

"At some point, hopefully sooner rather than later, Australian political leaders need to stop seeing superannuation as a honey pot and start to build a superannuation system whose sole purpose is to efficiently and effectively transform retirement savings into adequate retirement incomes for all Australians," Drew said.