Fairfax’s Michael Pascoe has written a good article today ripping into Australia’s superannuation system, which he argues is long overdue for reform:
You might have missed it if you blinked last week, but we suddenly seem to have something like consensus that the over-generous nature of our superannuation system for the well-off will be changed.
That was the closest thing to a concrete result from Malcolm Turnbull’s mini-summit. With the Abbott habit of ruling out change itself ruled out, business came to the party with the unions, social sector and the superannuation industry itself in backing genuine super reform.
The new Prime Minister and Treasurer didn’t disagree for two good reasons:
• The cost of the thing is exploding
• You can’t pursue other tax reforms that will look painful for the majority of the population if those at the very top continue to bask in the world’s best tax haven. That’s what our super system is.The amazingly generous provisions for the wealthy set up by Peter Costello and John Howard fit into the category of simply too good to be true, or at least too good to last… The Cayman Islands have nothing on it…
Even those with their noses deepest in the trough know the current system is not sustainable. Ask someone taking full advantage how it works and they will tend to tell you with a look of amazement on their faces and a note of incredulity in their voices. Well, that’s what it seems to do to me.
Good stuff. I couldn’t agree more.
Malcolm Turnbull’s overturning of Tony Abbott’s “captain’s call” not to reform super is so far his biggest achievement, and could very well win him the next election if handled well.
Not only would reform to superannuation immediately wash off the Abbottalyptic stain of “unfairness” that tainted the Coalition and offer a large dividend in Budget repair, but it would outflank Labor, who are also in favour of reform but have so far offered only weak policies.
