The superannuation industry has closed ranks to resist any changes to the tax regime around superannuation in the forthcoming Federal Budget.
With the Federal Government expected to change some of the tax settings applying to superannuation, particularly with respect to higher income earners, the four major organisations representing the superannuation industry have warned against the changes.
At the same time, the Federal Opposition has warned that the Government must stop using the superannuation sector as a revenue milch cow.
It is not yet known what impact the change in the balance of the House of Representatives will have on the Government’s Budget intentions.
The four organisations representing the super industry are the Financial Services Council (FSC), the Australian Institute of Superannuation Trustees (AIST), the Association of Superannuation Funds of Australia (ASFA) and the Self-Managed Super Fund Professionals’ Association.
All four organisations said that constant changes to superannuation tax arrangements could only serve to deliver instability for all working and retired Australians.
They pointed out that the Government had already been responsible for Budget tax changes in 2009-10 and 2010-11.
AIST chief executive Fiona Reynolds said taking the axe to super would only serve to put pressure on future budgets.
"Tinkering with super will leave all Australians with less private savings," she said.
ASFA chief executive Pauline Vamos said that for the sake of $1 billion in revenue, the Government would be undermining one of the best systems in the world and condemning many Australians to retirement without dignity.
FSC chief executive John Brogden warned that any reductions in concessions to superannuation in the Budget would be far outweighed by the cost to future Budgets.
