PM scotches talk of SG changes
The Prime Minister, Malcolm Turnbull, has effectively scotched suggestions that the Government intends abandoning the time-table for lifting the superannuation guarantee to 12 per cent.
Asked to comment on newspaper reports that the Government was contemplating scrapping the timetable which would see the SG rise to 12 per cent by 2025, the Prime Minister made clear the Government had no plans for such a move.
Newspaper reports suggesting the Government was contemplating abandoning the SG time-table prompted a united front from the superannuation industry with the major groups — the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC) all urging that the original time-table be left in place.
However, Turnbull said, "The Government has got no plans to change the rise in compulsory super" and while acknowledging a "very lively debate about tax and economic reform" emphasised "there is no proposal to cut or restrain the rise, the already scheduled rise in the rate of contributions".
With the Prime Minister having ruled out any further tampering with the SG, the Government appears intent on focusing changes to the super tax regime which would see a reduction in concessions to high income earners.
The Treasurer, Scott Morrison, has said that the purpose of superannuation should be to reduce pressure on the age pension and the Government is intent on super not being used as means of building tax free inheritance pools.
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