The Federal Treasurer, Wayne Swan, has refused to say why the Government will not separate changes to superannuation poIicy, including reducing tax incentives for upper income earners, from the Budget process.
Swan has confirmed the Government's intention to move on the tax incentives but, like the Minister for Financial Services, Bill Shorten, has claimed that the move is not aimed at reducing the Budget deficit but is a broader policy move to make superannuation more sustainable.
The question now facing the financial services industry is the method by which the Government will seek to move against upper income earners, and whether it will represent an extension of its 2012 Budget announcement impacting those earning over $300,000 a year.
"Everybody understands that the system must be sustainable for the long-term, that tax concessions for those at the very top are excessively generous and to make it sustainable over time the concessions need to be sustainable over time," he said.
"We do not approach this task of making superannuation sustainable as a savings task in itself for the Budget," he said. "The fact is that we have a substantial savings task in this Budget and whatever changes are made in super will not be making a significant contribution to that savings task.
"I can make that point very clear because it leads into my second point. Our objective is to build the system up, to make it better for an ageing population and to make sure most people in this community get a decent level of support in their retirement," he said.
Association of Superannuation Funds of Australia chief executive Pauline Vamos had earlier urged a considered debate and a long-term approach to any superannuation changes.
