Govt must address concessional caps
The broad thrust of the Government's Stronger Super package has been welcomed by a roundtable of industry experts, but the same panel has been critical of its failure to address the issue of concessional contribution caps.
The roundtable, run by Money Management's sister publication Super Review, concluded that the Government's decision to cut the concessional contribution caps during its first term now seemed like a regrettable error.
The roundtable concluded that while lifting the superannuation guarantee from 9 per cent to 12 per cent was desirable, it would still not guarantee a comfortable retirement for many Australians - something which added impetus to the arguments for a further review of concessional caps.
NGS Super trustee John Quessy said the timing of the Government's decision to cut the caps - in the direct aftermath of the global financial crisis - had been particularly unfortunate.
Deloitte partner Russell Mason said that while he could understand the issues which had confronted the Government, the question of concessional caps needed to be reviewed in the context of the ultimate cost of a comfortable retirement and reducing pressure on the age pension.
AUTHOR
Mike Taylor
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