Written by Mark Coulton MP -
The introduction of compulsory superannuation in Australia was a ground-breaking reform. It provided a system for Australians to build wealth towards a comfortable and self sufficient retirement. Superannuation is important because it reduces Australians’ long-term dependence on government support, which helps underpin the sustainability of government finances.
retirement, retirees and indeed everyone receiving employer super, need certainty. Unfortunately, confidence has been eroded as the Gillard Government has increased taxes on superannuation and has failed to rule out further taxes and restrictive conditions on Australians planning for their retirement.
The current Government has already imposed more than $8 billion in additional taxes on the super savings of Australians. This includes a dramatic decrease of the co-contribution for low income earners and a doubling of the super contributions tax for high income earners. They have reduced concessional contribution caps from $50,000 and $100,000 down to $25,000 across the board. Anyone who wants to save more than $25,000 per annum – including their compulsory super contribution – now has to pay more tax.
By raiding the retirement savings of Australians, the Gillard Government is putting even more pressure on future governments to fund Australia’s retirement income shortfall. This government has overseen a calamitous deterioration in Australia’s fiscal position. It has squandered billions on poorly conceived and poorly administered programs. It has overseen the fastest build up
of debt in Australia’s peace time
history, leaving a heavy burden on taxpayers to service and repay the debt. However, people saving for their retirement should not be forced to pay the price for this Government’s incompetence.
Restoring confidence in superannuation is part of the Coalition’s plan to build a strong and prosperous economy. To help Australians have confidence again in superannuation, I make this pledge: A Coalition Government will back superannuation to the hilt. We will deliver greater certainty and stability for superannuation – we won’t move the goalposts.
A Coalition Government will ensure that there are no unexpected detrimental changes to the superannuation system during the next term of parliament.
The Coalition is committed to work with all relevant stakeholders to ensure Australia’s superannuation system is the most efficient, transparent and competitive possible with appropriately high standards of corporate governance. This will help ensure that retirement savings are maximised
The Coalition wants to encourage as many Australians as possible to plan and save for their retirement, and to take full advantage of the benefits the superannuation system offers.