Industry has no expectation of super concessions

The Federal Treasurer, Joe Hockey, appears to have succeeded in almost totally dampening any expectations of superannuation tax incentives in the Federal Budget. 

The survey outcome has come at the same time as the Prime Minister, Tony Abbott, has signalled that while the Government is intent on lifting age pension access to 70, this is something which will not be pursued in the life of the new Parliament. 

However the Prime Minister said, “there are other social security benefits where indexation arrangements and eligibility thresholds could be adjusted now”. 

A survey conducted by Money Management’s sister publication, Super Review, during last month’s Conference of Major Superannuation Funds (CMSF) revealed that around three-quarters of respondents believed there was little likelihood any form of concessions would be delivered in the current Budget. 

Even more importantly, however, the survey respondents suggested that it was unlikely the Abbott Government would move significantly on super tax concessions in its first term. 

The survey revealed that 70.9 per cent of respondents believed that, given the Government’s discussion of the size of the deficit, it was unlikely it would deliver superannuation-related tax concessions in the life of the current Parliament. 

Over recent weeks both Hockey and the Minister for Finance and the minister currently overseeing the financial services portfolio, Senator Mathias Cormann, have reinforced the Government’s pre-election promise of no surprise adverse changes to superannuation in the life of the current Parliament.