Super body takes aim at Abbott

Debate must stay focused

By Christine St Anne
Thu 20 May 2010

The opposition leader's lack of support for super reforms is jeopardising people's retirement savings, AIST says, while IFSA is calling for the coalition to reverse its position on super.

The Australian Institute of Superannuation Trustees (AIST) has taken aim at opposition leader Tony Abbott's lack of support for the superannuation reforms announced by the government.

The move follows the opposition continuing to say it would to block the resources super profits tax (RSPT), which would subsequently affect a number of the reforms.

"Superannuation policy must not get lost in the debate in the mining industry," AIST chief executive Fiona Reynolds said at the association's breakfast in Sydney yesterday.

The superannuation reforms include an increase in the superannuation guarantee (SG) to 12 per cent.

"Tony Abbott has called the extra 3 per cent SG a big fat payroll tax. Well, Tony Abbott will also get a big fat parliamentary pension of $80,000 a year that will be paid for by the taxpayer," she said.

"Yet Abbott will deny voters an increase in their retirement savings."

She said the industry must stay focused and maintain one voice so that in the end "good policy will win out".

AIST's comments follow those of Investment and Financial Services Assocation chief executive John Brogden, who called on the opposition to reverse its decision to oppose the 3 per cent increase in the SG.

Brogden was responding to a speech by opposition treasury spokesman Joe Hockey to the National Press Club yesterday.

Brogden claims that Hockey announced that the coalition's savings measures included rejecting the increase in the SG from 9 per cent to 12 per cent.

"The coalition must reverse its position on the SG. This is a bad outcome for Australians and their retirement incomes," Brogden said.

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