Govt promises five-year freeze on super changes
The Federal Government has promised a five-year freeze on changes to superannuation tax policy, but the Opposition remains sceptical.
Treasurer Chris Bowen released a statement this morning saying the five-year freeze, which would commence immediately, would be enshrined in legislation by a re-elected Rudd Labor Government.
Bowen also said the Government would bring forward legislation to establish the Super Council to ensure any future changes to superannuation were consistent with an agreed Charter of Superannuation Adequacy and Sustainability.
However, the Federal Opposition has dismissed this promise, claiming the Australian Labor Party's record on super suggests it cannot be trusted.
The Shadow Assistant Treasurer, Senator Mathias Cormann, referenced the last time the Prime Minister, Kevin Rudd, had made a commitment not to change superannuation — before the 2007 election — and claimed that promise had been broken at every subsequent Budget.
Further, Cormann claimed it was irresponsible for the Government to rule out all change to superannuation, because this would preclude making beneficial changes.
"A commitment to no change at all would mean that the current lack of competition in the default funds market would remain entrenched and that there would be no capacity to improve corporate governance arrangements in line with relevant Cooper Review recommendations," he said.
"It would also mean no opportunity to revisit the level of concessional caps or super co-contribution benefits for low income earners, which under Labor are way too low, once the budget is in a strong enough position to afford it."
He said the Government's commitment would also deny it any capacity to ensure the issue of excess contributions was properly addressed so that Australians saving for their retirement were not unfairly penalised for genuine unintended errors.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
