Abbott criticised on super changes
The Australian Institute of Superannuation Trustees (AIST) has strongly criticised the Federal Opposition's approach to superannuation in the wake of the Opposition leader, Tony Abbott, flagging a delay in lifting the superannuation guarantee (SG) to 12 per cent.
The Opposition leader used his Budget reply speech to identify a change to the timetabling of the higher superannuation guarantee as a cost-saving measure, but AIST chief executive Tom Garcia said delaying the lifting of the compulsory super rate to 12 per cent was counter to the Coalition's pledge to make "no unexpected adverse changes to superannuation" in its first term if it won the next election.
"What could be more adverse than delaying the super increase," he said.
Garcia said the gradual rise in the superannuation guarantee from 9 to 12 per cent by 2019/20 was critical to ensuring that the majority of Australians retired with an adequate income, while under the Coalition's plan the SG would not reach 12 per cent until 2021/22.
"We are very concerned that this announcement by the Coalition could be the thin end of the wedge — it brings into question their commitment to compulsory superannuation," he said.
The Minister for Financial Services, Bill Shorten, claimed the Coalition would not just be delaying the implementation of the higher superannuation guarantee, saying "a Liberal government won't just delay the increase in compulsory superannuation contributions, they will scrap it completely".
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