Opposition leader Tony Abbott has moved to create stronger ties with Australia’s superannuation sector after acknowledging the importance of adopting a firm super policy.
Abbott made the comments as part of his address to a Financial Services Council (FSC) breakfast briefing last week.
“We do accept that it is very important that people have adequate retirement incomes particularly with an aging population,” he said.
However, despite recognising the importance of good policy and the work of industry participants, Abbott reaffirmed his party’s objection to increasing the country’s superannuation guarantee (SG) from nine to 12 per cent.
“We have been, I believe, perfectly consistent on this subject for the last two decades. We are not instinctive supporters of mandatory superannuation contributions,” he said.
“Our instinct is to provide incentives and not to coerce people. Nevertheless once these things are there, we don’t add to them but we don’t roll them back and that is the approach that we will take to the current legislation.”
Abbott said the Coalition will not support SG in the parliament however if it goes through they will “not try to rescind it”.
“I should also acknowledge that in a country like Australia with a strong welfare safety net, most people, most of the time do not save very much and it perhaps important that we have an element of compulsion if there is going to be the level of national saving that we would like to have,” he said.
Abbott said if the Coalition were in government a key focus would be on transparency, small business and deregulation.
“These are in our DNA, these are in the marrow of our bone and these are often lacking in the superannuation system as we see it right now,” he said.
Abbott said he was pleased to hear the industry had developed a strong working relationship with Shadow ministerial colleague Mathias Cormann.
Earlier in the briefing, AMP Financial Services managing director Craig Meller spoke on behalf of sectors of the industry by praising Cormann.
“We in the industry have all been very impressed by the vision for and the grasp of our sector shown by the Shadow Assistant Treasurer, Senator Mathias Cormann, and Tony we look forward to working with you and the Senator in finalising your strategy and policies for the future of the superannuation industry and the financial planning industry,” Meller said.
Association of Superannuation Funds of Australia chief executive Pauline Vamos said Abbott’s comments were “consistent” and held no surprises.
“We’re very pleased that they are not going to roll back the increase in SG. Mathias Cormann confirmed at our conference that they will not be pushing and they will probably roll back the low income rebate,” Vamos said.
“The big thing about today [Friday] is that they have confirmed their interest in superannuation policy and that is the important thing for me to get the dialogue going.”
