Industry bodies have welcomed the Federal Government’s announcement that it will refrain from tinkering with superannuation tax policy for five year periods if re-elected.
Treasurer Chris Bowen released a statement on Wednesday that vowed to enshrine the freeze in legislation if Labor is re-elected at the next election.
ASFA chief executive Pauline Vamos said that with both major parties committing to stability at least until the next Parliamentary term, it would provide certainty for those saving for retirement and also implement some stability in the system.
“However it is important that for the sake of clarity and certainty, the Government clarifies whether the proposed freeze means the measures announced earlier this year, but not yet legislated, will go ahead as planned if the Rudd Government were to be re-elected,” she said.
Financial Services Council (FSC) chief executive John Brogden said the Government had listened to its requests to move superannuation out of the budget cycle and impose a five-year moratorium on major changes to super tax policy.
“The FSC has called for the Intergenerational Report to be released every five years and used as the basis for any changes to superannuation.”
The Industry Super Network (ISN) applauded the move, along with the pledge to lock in the Low Income Earners’ Tax Concession for those earning under $37,000 and legislation to develop a Council of Superannuation Custodians.
“Saving for retirement is a life-long proposition, and people need to have confidence that the rules are going to stay broadly the same,” ISN chief executive David Whitely said.
However, ASFA said it would wait for the fine print detailed in the Charter Group’s report before deciding whether the Council of Superannuation Custodians could ensure retirement incomes policy was developed outside of short-term political goals.
