The Financial Services Council (FSC) has released its submission to the 2013/2014 federal Budget, calling on governments to refrain from further changes to the Australian superannuation system.
In a statement accompanying the budget submission, FSC chief executive John Brogden said superannuation tax concessions were not unsustainable and that policymakers should “leave super alone” in the lead-up to the September election.
“Earnings tax on a large and growing pool of national savings is clearly a strong source of revenue for the government under current policy settings,” he said.
“However, superannuation must not be viewed as a honeypot,” he added. “The government and Coalition must commit to no further changes between now and the election and in the first term of parliament.”
Mr Brogden identified the FSC’s concerns around potential changes to the tax code by the federal government and a suggestion that the federal Opposition may abolish the low income earner’s concession if elected in September.
“If superannuation becomes a political issue no-one wins,” he said.
The FSC’s submission made a number of policy recommendations, including reducing “reliance on the Age Pension”, an outcome it says will “alleviate pressure on the budget in the long run.”
It also inferred that an increase in superannuation contribution concessions would be welcome, arguing that “the $14 billion concession . is modest in the context of $82.5 billion in total mandatory superannuation contributions in 2011/2012”.
It recommended the federal government conduct an inter-generational study in 2013 to assess the impact of reform and tax changes to superannuation, thereby ensuring “informed policy debate on these issues”.
