Abbott reiterates opposition to superannuation guarantee rise

The Coalition does not and will not support compulsion in national savings, but will not repeal an increase in the superannuation guarantee (SG) from 9 to 12 per cent if it is passed, according to opposition leader Tony Abbott.

Abbott told a Financial Services Council (FSC) breakfast on Friday that the Coalition was not given much credit for being interested in superannuation, but the party was interested in people's retirement savings. However he said his party was more interested in incentives than compulsion and in carrots rather than sticks when it came to encouraging people to save for their retirement. 

Abbott acknowledged that it was important for the future of the country that people had adequate retirement incomes, particularly with an ageing population. He also acknowledged that with a strong welfare safety net, people often did not save much.

"It is perhaps important that we have an element of compulsion if there is going to be the level of national saving that we would like to have," he conceded.

He said the Coalition would always have an instinct and a preference for transparency, small business and deregulation, which he claimed were often lacking in the system right now.

FSC chief executive John Brogden paid credit to the work done by shadow Financial Services Minister Mathias Cormann (who could not be at the breakfast due to another commitment) for learning everything he could about the financial services portfolio. Abbott said he was pleased that the industry had developed such a strong working relationship with Cormann.