POWERED BY MOMENTUM MEDIA
Bowen defends cost of super changes
The superannuation changes announced in the Federal Budget, including the lifting of the super guarantee to 12 per cent, will cost the Government $2.4 billion over the next four years, according to the Minister for Financial Services, Chris Bowen,
In a ministerial statement delivered to the Parliament this week, Bowen said those who suggested the changes to superannuation wouldn't cost the Government any money did not understand the facts or, worse still, chose to wilfully misrepresent those facts.
"Increasing the superannuation guarantee, refunding the tax paid on superannuation for low income earners and raising concessional contributions for those aged 50 or over with lower superannuation savings reduces the tax burden on working Australians," he said. "As such, these measures will cost around $2.4 billion over the next four years."
Bowen also claimed that it was the level of Australia's superannuation savings that had helped the country weather the global financial crisis.
"In the 2009 financial year, at a time when liquidity was being rapidly withdrawn from markets around the world, Australia remained an attractive place to raise capital," he said. "Australian listed companies raised $90 billion of equity. Investor support, including from Australian institutional investors, helped to restore the capital base of companies that together employ over 1.6 million Australians."
"To put this in context, at the height of the financial and liquidity crisis, a greater proportion of the total market capitalisation of listed companies was raised in Australian than in any other major economy," Bowen said.
AUTHOR
Mike Taylor
Recommended for you
The Your Future, Your Super scheme and RG 97 may be directing capital away from more productive uses and discouraging active investment strategies, says the independent MP.
SuperRatings has shared the top 10 balanced options of the last financial year.
Rest Super remains “fully committed” to equities, even as it anticipates higher market volatility than experienced in previous decades.
Australian superannuation funds have again generated strong returns for FY25, with the median growth fund returning 10.5 per cent for the year, according to Chant West.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
