The Government on Wed 31.7.2013, announced that, if elected, it would enshrine in legislation that it would make “no major changes to superannuation tax policy for 5-year periods” to promote confidence in the superannuation system.
The Government said the “5-year freeze, which commenced immediately [ie Wed 31.7.2013], meant Australians could feel confident that under a Labor Government, the rise to 12% super, increased concessional caps and the tax cut for workers earning up to $37,000 will not be ripped away”.
The Government said it would also bring forward legislation to establish the Super Council to ensure any future changes to superannuation are consistent with an agreed Charter of Superannuation Adequacy and Sustainability. It said the Charter will include the commitment to a 5-year moratorium on changes to superannuation tax policy. The Government said that prior to the conclusion of the 5-year moratorium, the Council would conduct a transparent review of the issues that need to be addressed, through the issuing of discussion papers and a thorough consultation process. Once any proposed changes from this process were made there would be a moratorium on further policy changes for another 5-year period. The Government said it will “make an announcement on the membership of the Council in due course”.
The Government has also released the final report of the Charter Group, entitled A super charter: fewer changes, better outcomes. The report includes a draft Super Charter. Mr Bowen said a re-elected Rudd Government will also enshrine the Charter in legislation. He said the Super Council will consult widely on the Charter Group’s recommendations and draft Charter and develop the legislative framework for the Charter and Council.
Source: Treasurer’s media release No 012, 31 July 2013; Treasurer’s speech to the Financial Services Council Annual Conference, 31 July 2013
[LTN 146, 31/7/13]