Long term vision needed for Australian super policy
Proposed new changes to the Superannuation Guarantee Contribution (SGC) risk billions of dollars in retirement savings and further underscore the need for a long-term vision and direction for superannuation policy, CPA Australia chief executive, Alex Malley, said today.
Mr Malley said the changes, passed by the House of Representatives late yesterday, would allow the Treasurer to vary the rate of the superannuation guarantee by regulation.
“As we said in our submission to the Financial Service Inquiry, the penchant of successive governments to fiddle at the edges of superannuation policy, constant rule changes and revenue grabs undermine public confidence in the system and threaten Australia’s long-term savings.
“The changes that passed the House of Representatives come on top of tweaks to the SGC rates announced in the budget just four months ago.
“Superannuation is supposed to be a long-term savings vehicle. It therefore requires a long-term vision and direction, not to be left at the whim of the political cycle.
“This latest change provides further evidence of the need for an independent body to oversee retirement savings policy to take these important decisions out of the hands of politicians.”
Ben Pratt: 0419 968 734