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(April-2005): Costello flags reduction in surcharge
The Federal Treasurer, Peter Costello, has flagged the likelihood that the Government will use the May Budget to reintroduce legislation aimed at reducing the superannuation surcharge.
Speaking on South Australian radio late last month, Costello pointed out that the earlier moves to reduce the surcharge had been defeated in the Senate but that the Government would possess a majority in both houses of Parliament from July 1 .
“We have had a few goes already at reducing taxes in relation to superannuation, in particular the superannuation surcharge, and that has been defeated in the Senate. So if the Senate majority changes, I would be much more confident about pursuing that,” Costello said.
The Treasurer said that while he was not necessarily pointing to a firm policy decision on the part of the Government, he was saying “that if the road block gets removed that will be a positive step forward”.
Mr Costello’s statement on the surcharge follow those of the Minister for Administration and Finance, Nick Minchin, who said in January he was in favour of abolishing the superannuation surcharge.
Minchin said he was “determined to advocate on the abolition of the superannuation surcharge and the removal of taxes on imported business inputs”.
Minchin’s comments were warmly welcomed by the Investment and Financial Services Association as likely to make positive contribution to the simplification of the superannuation regulatory regime.
AUTHOR
Mike Taylor
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