While research commissioned by the Association of Superannuation Funds Australia (ASFA) suggests that superannuation is becoming a central issue for a wider range of Australians, the attitude of the major parties suggests they have no intention of making it a central campaign theme.
Any examination of the views of the major parties on superannuation tells us they all acknowledge that the 9 per cent superannuation guarantee levy is not sufficient to provide for a self-funded retirement and that people need to be encouraged to contribute more. Unfortunately, there is little commonality of view about how this should be achieved.
ASFA has reiterated its view that a cut to the 15 per cent contributions tax would go some way towards encouraging greater retirement savings and, while the Opposition Australian Labor Party last year indicated its preparedness to cut the rate to 13 per cent, that position is now under review.
For their part, the Australian Democrats are arguing that much can be achieved by creating an environment that actually encourages super savings and suggest this can be achieved via consumer education, improved education and Government incentives.
The Government, meanwhile, is telling us that while it is supportive of policies that can produce significant increase in retirement income, it has already provided substantial tax concessions worth $11.2 billion in 2003-04 and the average Australian worker will have an estimated 40 per cent more in retirement by investing money in super.
None of which suggests that we are likely to witness any major policy breakthroughs in 2004, notwithstanding the fact that the choice of fund legislation will once again be the centre of debate and notwithstanding the fact that investment returns are unlikely to make double digits.
The bottom line, of course, is that irrespective of the concessional tax environment, superannuation still represents a major revenue generator for the Commonwealth and one which politicians are loath to reduce. Thus, it seems we are likely to witness a federal election campaign with a good deal more rhetoric than action when it comes to superannuation, leaving it up to the industry to better sell the message of self-funded retirement.
