Another super move
By
Julia Newbould
Mon 07 Apr 2008
Superannuation is becoming an even bigger sell to those in the accumulation phase, like me, as the Federal Government makes noises about further tweaks to the system.
Superannuation is becoming an even bigger sell to those in the accumulation phase, like me, as the Federal Government makes noises about further tweaks to the system.
I have known for as long as I have been writing in this area (eight years) that superannuation makes good financial sense.
The tax breaks are unequalled and it has been made more attractive recently, but the murmurs about changing it to make it more equitable seem to justify my reticence to invest more heavily in this vehicle.
It's not the superannuation system that I don't trust, or the products or the advisers I have used. Instead it is the changing governments - which will happen many more times before I retire - that keep fiddling with the system, which discourages me to participate enthusiastically.
Last week, Superannuation and Corporate Law Minister Nick Sherry made a statement, probably to gauge popular support for his idea, for super being taxed in a more equitable manner.
He said "the priorities for the system should include superannuation being taxed in a fair and equitable manner".
Last year, $42 billion was deposited by Australian pre-retirees in the 12 weeks before June 30 on the promise of a tax-free future.
And while, in many eyes, the zero tax for retirees' money coming out of super is not equitable or fair, that point is somewhat moot.
It's the constant changes to the system that put me off. There will never be a bipartisan agreement on super. It will be played with by successive governments.
Taxes may change, method of withdrawal may be tweaked, but most frighteningly the age at which retirees can access their money may also alter.
And that is something that I don't want to contemplate. Access is already far enough away.
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