Coalition Govt would review concessional caps
Concessional contribution cap limits will be back on the agenda if the Federal Opposition wins office at the September election, the Shadow Minister for Financial Services, Mathias Cormann, confirmed last week.
However, Cormann made clear that a policy position could not be reached until the Opposition was able to properly assess the Budget.
"We don't know the starting position of the Budget because we don't trust [Wayne] Swan," he said.
He said the Government's recent decision to increase concessional cap limits to $35,000 was better than what existed previously, but no attention had been paid to non-concessional cap limits and breaches — which was an area the Opposition would assess.
He recommitted to delaying the super guarantee increase to 2021, and said that if a Liberal-led Government won the election it would require industry super funds to have one third independent directors and would ensure default settings allowed any MySuper product to qualify.
"We don't see any reason for another layer of bureaucracy," Cormann said.
Similarly, he said the Council of Super Custodians created unnecessary red tape and a situation where the Government delegated its decisions to a board of vested interests.
"We already have a Council of Super Custodians — it's the Australian public," Cormann said.
He highlighted retirement product innovation as an important future focus area.
AUTHOR
Staff Writer
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
