Speaking to the Australian Chamber of Commerce and Industry last week, Prime Minister Tony Abbott said the government has “no plans to increase taxes on superannuation”.
Mr Abbott’s comments come soon after the release of the government’s tax discussion paper that raises the issue of the inequality of the current superannuation tax concessions.
“[We] will honour our commitment not to make any adverse or unexpected changes to superannuation during this term,” Mr Abbott said.
“Our goal is always to get taxes down; our constant objective is taxes that are lower, simpler and fairer.”
BDO Superannuation partner Paul Rafton said the delay by the government in providing a strong position had been sending “panic waves through the market”.
“Since Christmas there has been misinformation and conflicting comments about whether there would or wouldn’t be changes to superannuation and that caused alarm for many people,” said Mr Rafton.
The prime minister’s comments from last Thursday, Mr Rafton said, have helped “allay people’s fears”.
Months of uncertainty have, however, demonstrated the importance of superannuation to the future of Australia.
Mr Rafton said that while there has always been increased interest in superannuation queries at this time of the year, in the lead up to the Budget, there had been an unprecedented amount of concern this year.
“Superannuation is an investment that’s made over decades and it needs to be treated accordingly,” he said.
“While uncertainty about changes to superannuation is disconcerting, it doesn’t warrant drastic actions, at least not without proper consideration of an individual’s complete financial circumstances.”
The best way to handle periods of uncertainty, Mr Rafton said, is to continue to follow the current rules and regulations surrounding superannuation.
