The Rudd government has today announced that it will make no major changes to superannuation tax policy for a period of five-years – if they’re re-elected to government.
“The five-year freeze, which commences immediately, means Australians can feel confident that under a Labor Government, the rise to 12 per cent super, increased concessional caps and the tax cut for workers earning up to $37,000 will not be ripped away,” Treasury announced in a statement today.
In making the announcement, Treasurer Chris Bowen cited increased life expectancy as chief among reasons for a sustainable superannuation policy.
The Government will also bring forward legislation to establish the Super Council to ensure any future changes to superannuation are consistent with an agreed Charter of Superannuation Adequacy and Sustainability.
Shadow Assistant Treasurer Senator Mathias Cormann was scathing in his rebuke of the announcement, saying the government is playing ‘catch-up’ when it comes to their superannuation policy.
Cormann accused the labor government of increasing taxes on superannuation, and said it is irresponsible governance to issue a blanket ban on changes to policy.
“Positive, beneficial changes to superannuation policy settings must be possible. A total commitment to no change at all would mean that the current lack of competition in the default funds market would remain entrenched and that there would be no capacity to improve corporate governance arrangements in line with relevant Cooper Review recommendations,” Cormann said.
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