Superannuation industry bodies have welcomed the news that Julia Gillard’s government has returned to office, following yesterday’s decision by independents Tony Windsor and Rob Oakeshott to support the Labor party.
“We assume that the newly formed government will push ahead with the super reforms, including its commitment to lifting the super guarantee (SG) to 12 per cent,” the Australian Institute of Superannuation Trustees (AIST) chief executive Fiona Reynolds said.
“It’s good to see that the election deadlock has been broken. Australians need a stable government as well as certainty in superannuation so they can make decisions about their retirement.”
Reynolds said AIST looked forward to further consultation with the government as the superannuation industry prepares to implement the reforms from the various reviews over the past two years.
“The result is a win for all working Australians who stand to benefit from a suite of reforms that includes a rise in compulsory super to 12 per cent, no hidden commissions on super, and greater equity and efficiency across our system,” she said.
The Association of Superannuation Funds of Australia (ASFA) said the parliament must now push on with implementation of the previously announced Labor superannuation policy.
“This is the first opportunity we have ever had to have bi-partisan support for super. This will deliver certainty that Australians want when they put money away for their retirement,” ASFA chief executive Pauline Vamos said.
“We urge an immediate implementation of several key aspects of public policy to address the retirement savings gap and increase the SG from 9 to 12 per cent.
“Super also needs its own ‘broadband’ and that’s immediate consultation on the implementation of many Cooper review SuperStream provisions.”
Under the government’s timetable of reform, the SG will rise to 12 per cent by 2019/20, starting with a 0.25 per cent rise in 2013/14.
Low-income earners will benefit from a $500 super tax offset, while most older workers will continue to have access to higher concessional caps.
The government has also committed to Cooper review reforms including MySuper and SuperStream and has signalled its intention to ban hidden commissions on compulsory super payments.
