We’ll still lift the SG, says Cormann
The Federal Opposition has insisted it remains committed to delivering on lifting the superannuation guarantee to 12 per cent and that claims that it is doing any more than delaying the phase-in represent "a hysterical over-reaction".
The Shadow Assistant Treasurer, Senator Mathias Cormann, said it needed to be understood that the extension to the phase-in of the superannuation guarantee was aimed at helping a Coalition Government fund income tax cuts and pension increases in the absence of a carbon tax — something that would leave most people better off.
Senator Cormann's comments appear to reflect a call by the Financial Services Council (FSC) for the Opposition to "unequivocally re-commit to increasing the Superannuation Guarantee to 12 per cent".
FSC chief executive John Brogden described delaying the SG rise as a "bitter pill" and claimed such a recommitment was necessary.
The SMSF Professionals' Association of Australia (SPAA) on Friday joined a growing chorus of industry voices urging against the superannuation guarantee delay announced by the leader of the Opposition, Tony Abbott, in his Budget reply speech.
SPAA's head of technical and professional standards, Graeme Colley, said any decision which deferred an increase in the superannuation guarantee would simply reduce the adequacy of Australia's retirement savings.
"SPAA would ask the Coalition to think carefully about such a move, especially in light of its recent commitment not to make any changes to superannuation," he said. "The Coalition's policy, if implemented, would affect the superannuation savings of 8.4 million Australians, with the two-year delay meaning super contributions would only reach 12 per cent by 1 July 2021."
However, Cormann said that unlike the Government the Coalition were being honest with people about its plans before an election.
"We have made a firm commitment not to make any unexpected detrimental changes to super in our first term of government. We will stick to that commitment. Our commitment is to ‘no surprises and no excuses'," he said.
Cormann said the change announced last week was "a measured change to deal with the Budget emergency we're in after almost six years of Budget mismanagement by Wayne Swan. We've said we would not rescind the increase in compulsory super to 12 percent and we're not rescinding it".
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