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Coalition super policy small on detail
The Federal Opposition has released its superannuation policy, but beyond reinforcing its intention to abolish the superannuation guarantee age limit, it has kept its powder dry on the key recommendations of the Cooper Review and the Henry Tax Review.
However, while keeping their powder drive, the Coalition parties have signalled a tax break alternative to lifting the superannuation guarantee to 12 per cent, and distaste for the Cooper Review’s concept of MySuper.
The Coalition policy, released by the Liberal Party today, focused on criticising the policies of the Federal Government and confined its definitive promises to the abolition of the superannuation guarantee age limit from 1 July 2013 and requesting that the Australian Office of Financial Management examine the issuing of bonds for terms of up to 30 years.
On the issue of the Cooper Review recommendations, the Coalition said it recognised the merits of many of the recommendations but said it would consider and respond to them only when it had the ability to discuss the likely financial and economic impact of individual recommendations with the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and the Treasury.
However, it made clear in its explanatory documentation that it would support the Cooper Review’s SuperStream recommendations for streamlining the back-office functions of the industry while remaining very hesitant on the MySuper proposals for default super arrangements.
The Coalition policy also suggested that it would be more inclined towards creating a more beneficial tax environment for superannuation than lifting the superannuation guarantee to 12 per cent.
It quotes a section of the Henry Tax Review findings that “the recommended changes to the taxation of superannuation would increase private savings more than would an increase in the superannuation guarantee to 12 per cent under the current tax arrangements”.
AUTHOR
Mike Taylor
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