Superannuation still a key policy: Costello

Peter Costello

The Federal Treasurer, Peter Costello, has used the release of the second Intergenerational Report to make clear that superannuation remains at the forefront of its policy for dealing with Australia’s ageing population.

In an address to the National Press Club, Costello said Australia’s long-term financial sustainability had improved since the release of the first Intergenerational Report nearly five years ago, but that demographic changes were still working against the nation.

He said the Government had moved to address many of the key issues, and that over the past five years there had been a significant reversal in the long-term decline in participation rates for men aged 55 to 64.

“I think an excellent example of policy for the future is the recent Simplified Superannuation reforms,” he said.

“These reforms are the most significant reforms to the taxation of Australia’s superannuation in decades.”

The Treasurer said the reforms would make superannuation arrangements easier to understand, improve incentives to work and save and strengthen incentives for older Australians to remain in the workforce.

“If people stay in the workforce longer, this is an enormous gain to the workforce over time,” he said.

“It is also a personal gain to people who have an enormous amount of energy and experience to continue to contribute to society.”

Costello said he regarded this as policy design at its best.