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Reforms to support economic challenges: Shorten
The Government's proposed Stronger Super reforms are "vitally important" to tackling economic challenges facing the nation, and will be funded by the Minerals Resource Rent Tax (MRRT), according to Financial Services Minister Bill Shorten.
The reforms, in particular an increase in the superannuation guarantee (SG) from 9 per cent to 12 per cent, are "vitally important" to economic challenges facing the nation, Shorten said yesterday in a speech to the Centre for Investor Education Conference.
Around a third of the proceeds of the Minerals Rent Resource Tax (MRRT) will help pay for the increased cost of superannuation's concessional tax treatment, Shorten said.
Australia is an economy in transition and our superannuation system provides a deep pool of private capital to help us to meet those challenges, he said.
The boost to national savings resulting from an increase in the SG means more of the nation's future investment needs can be financed domestically, reducing current account financing risks, as well as reducing the dependence on the aged pension and lessening the pressure of an ageing population, he said.
The increased SG will also help to moderate domestic aggregate demand, reducing pressure on inflation, interest rates and the exchange rate, he added.
Shorten also reiterated the need for the cost savings that would be provided by Superstream reforms and said that MySuper was necessary to help members compare funds based on a few transparent measures.
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The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
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