Reform to Australia’s inequitable and unsustainable superannuation concessions looks like a real possibility, with all major parties now backing reform.
According to The AFR, Labor Treasury Spokesman, Chris Bowen, said there would be bipartisan support to reform the superannuation regime, which he claims is in need of “improvement”:
“Where you have got the situation where the vast majority of tax concessions go to people on high incomes who don’t need and won’t need the age pension regardless of how many tax concessions you give them, that’s not a system that is fit for purpose”…
According to the article, Labor is still mulling its options, but will likely focus on pairing back benefits to wealthy superannuants with large balances, and will likely target the tax-free status afforded to over-60s.
For his part, Treasurer Joe Hockey has indicated that the Government would take changes to the next election, but was coy on what exactly would be involved:
“There are an enormous number of discrepancies and also discrepancies involving the aged pension system – so this is something we’re thinking very deeply about”…
“Importantly we need to provide stability and certainty and we need a bipartisan approach”…
The Greens, by contrast, have taken an even stronger approach, running the following banner at last weekend’s NSW election:
Regardless, it is great to finally see some broad agreement that current superannuation concession arrangements are inequitable and unsustainable, and must be reformed.
Now the devil will be in the detail.
