Federal Treasurer Scott Morrison has flagged changes to superannuation "tax incentives" in the May budget to ensure Australia's retirement system is "fit for purpose".
Speaking at the Australian Financial Review Business Summit in Melbourne yesterday, Mr Morrison spoke about the government's commitment to enshrine the purpose of superannuation in legislation.
"Any changes that we make to superannuation will be about that purpose and making it fit for that purpose," Mr Morrison said.
"How tax incentives are structured will no doubt form part of these changes, but the changes will be about delivering a fairer and more sustainable retirement income system for our 21st century economy, building on the pension reforms in last year's budget," he said.
"Where you have to target and make every incentive work for you is on those Australians who are most likely to be at risk of being dependent on a welfare payment into their retirement."
Mr Morrison also stressed that superannuation is "not an estate planning tool".
"That is not what superannuation, we believe, was designed to be. It was designed, as I said, to help people who might have otherwise been on the pension to have a pool of retirement savings that they can draw down on to live on and to enjoy a quality of life in their retirement that they have worked hard to achieve," he said.
Finally, any changes to the superannuation system will not be about "revenue raising", Mr Morrison said.
"It is not about higher taxes to fund higher spending. It's about a better retirement incomes system," he said.
ASIC has pushed the superannuation industry to lift its game across insurance, with the regulator saying the sector is making it easy for me...
HESTA has teamed up with Women’s Legal Service Victoria to simplifying the process of splitting superannuation assets, with the goal of he...
If the prudential regulator was hoping to provide clarity on MySuper products it has failed miserably. ...