The Federal Treasurer, Scott Morrison has refused to rule in or out Government consideration of suggestions that students should be allowed to use their superannuation to help pay down their HECS debt.
Directly asked about the proposal, which has been roundly criticised by major superannuation organisations such as the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST), Morrison noted that the proposal was capable of delivering greater flexibility.
However, he put the Government’s consideration of the issue as being no higher than it being a part of the Government’s consideration of options.
“I have said all along that the reason we have tax incentives for superannuation is to ensure that over the course of someone’s working life they can put themselves in a place of being independent in retirement,” he said.
However, he reinforced the Government’s desire to continue pursuing choice of superannuation fund in the default fund environment and changes to superannuation fund governance including one-third independent directors, which he said were being resisted by the Labor Party “because of their links to the union movement and union funds”.
Referring to the HECS payment proposal, Morrison said it was “an option which is talking about greater flexibility” and added that in the Government’s approach to policy “we consider all of these issues”.
“We don’t rule things in or out, we just soberly work through these issues and make good decisions for the benefit of the Australian economy,” the Treasurer said.
