Super policy amendments looking inevitable

The financial services industry is expecting amendments to the Government's Budget superannuation policy announcements and a possible change in minister in the aftermath of the Federal Election.

With an array of independents likely to control the balance of power in the Senate, the Government is expected to amend its Budget changes to superannuation to remove the known areas of contention, particularly those perceived to have injected retrospectivity.

However the Budget changes targeting high income earners and those with high account balances are not expected to be significantly amended, with the Federal Opposition, the Greens and Nick Xenophon having argued for the injection of greater equity into the superannuation tax regime.

The loss of a number of junior ministers in the election has necessitated a Cabinet reshuffle on the part of the Prime Minister, with high levels of speculation around the targeting of ministers whose portfolio responsibilities were seen to have become key election issues.

Much media attention has been directed at the future of Health Minister, Sussan Ley, because of the negative attention directed at Medicare throughout the election campaign, but elements of the Liberal Party have also been critical of Assistant Treasurer, Kelly O'Dwyer, over the Government's handling of the Budget superannuation changes.

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The make-up of both the House of Representatives and the Senate is such that the Government is also unlikely to be able to continue to resist calls for a Royal Commission into the banking and financial services industry.