No major changes to super in the next Parliamentary term a relief for all Australians: ASFA

The Association of Superannuation Funds of Australia (ASFA) today said Australians would be relieved the Rudd Government has announced that if re-elected it will make no major changes to superannuation tax policy for five-year periods.

ASFA CEO Ms Pauline Vamos says it will help deliver some stability to the system and help people plan for their retirement with a degree of certainty.

“We have been calling on policy makers to take a long-term holistic view when it comes to the future design of our superannuation system for a considerable time. With both major parties now committed to not making any major changes for at least the next Parliamentary term, the Australian community will be relieved to hear that they can now plan for their retirement with some confidence that the goal posts won’t be moved in the short-term.”

“A freeze will also give policy makers time to consider how we can evolve our superannuation system to accommodate the challenges posed by an ageing population. This is why we released a White Paper and community consultation period earlier this year – to start a conversation now about how the system can be adjusted to ensure it is sustainable over the long-term and delivers an adequate income for all Australians to live a comfortable retirement.”

“However it is important that for the sake of clarity and certainty, the government clarifies whether the proposed freeze means the measures announced earlier this year, but not yet legislated, will go ahead as planned if the Rudd Government were to be re-elected,” Ms Vamos says.

The Government today also announced that if re-elected it will bring forward legislation to establish a Super Council. Ms Vamos says ASFA supports measures that ensure retirement incomes policy is set outside short term political needs and will be looking at the Charter Group’s report closely to determine whether or not this body would achieve this.

“Let’s not forget that the industry is currently in the process of implementing significant regulatory changes as a result of the Stronger Super and FoFA reforms as well as other tax legislative measures. There are still a number of issues relating to timing, transition and impact that need to be worked through and we urge the Government and regulators to work closely with industry in order to achieve the best outcomes for funds and their members,” Ms Vamos concluded.

For further information regarding ASFA’s White Paper and community consultation process, visit www.superannuation.asn.au/vision-for-super.

For further information, please contact:
Lisa Chikarovski, Media Manager, 0451 949 300

About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation whose aim is to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.