“The Gillard Government has the long term future of the nation squarely in its sights, particularly when it comes to ensuring working Australians can have a decent retirement,” said the Minister.
“I call on the BCA today to support the Council which will assess all future superannuation policy proposals against a Charter of Adequacy and Sustainability.”
“The Charter will set out the original intent of superannuation and protect its integrity over the long term, for the first time elevating superannuation policy beyond the political and fiscal fray.”
“The Gillard Government wants to continue to legacy of the Hawke-Keating Government by ensuring Australians have adequate retirement savings in 20, 30, 40 years.
“The basic objective of the Government’s retirement incomes policy is to ensure that all members of the population have an adequate and secure level of income in retirement.”
Consistent with the principles upon which superannuation was established, the Gillard Government also recently announced measures to help grow the retirement savings of working Australians and ensure it is affordable over the long term, including:
- capping the tax exemption for future earnings from superannuation pensions and annuities at $100,000, with a concessional tax rate of 15 per cent applying thereafter, and
- allowing Australians 60 and over to contribute up to $35,000 towards their superannuation accounts from 1 July 2013 at a lower rate of tax, and extend this to those 50 and over from 1 July 2014.
The Gillard Government is increasing universal superannuation contributions from 9 to 12 per cent and has removed the 15 per cent contribution tax on 3.6 million low income earners.
“Boosting superannuation contributions from 9 to 12 per cent alone will add another $500 billion to Australia's national superannuation saving pool by 2037.”
“These long-term, future-focused settings are in complete contrast to the Opposition’s plan to rip $4 billion from the superannuation accounts of low income Australians.”
"The Liberal Party opposed the creation of universal compulsory superannuation, and has voted against every increase in universal superannuation contributions proposed by Labor.”
“Tony Abbott believes superannuation is a ‘con job’ and has announced he will tax the superannuation contributions of hard working Australians earning less than $37,000.”
“Compulsory superannuation is one of the biggest con jobs ever foisted by government on the Australian people.”
TONY ABBOTT - HOUSE OF REPRESENTATIVES - 25 SEPTEMBER 1995
“Under Tony Abbott the future of superannuation is too much about politics and not enough about retirement plans,” said the Minister.
“The Council will ensure governments of all persuasions have the long-term interests of Australians at the forefront of their minds when they look to future superannuation policy settings.”
Membership of the Council will be finalised following public consultation, but it is expected to comprise eminent representatives drawn from the community, industry and regulators.
To assist with industry consultation, it is proposed to establish a Charter Group in the coming weeks to help develop the Charter and establish the Council.