Peter Costello
Federal Treasurer Peter Costello has called upon the superannuation industry to simplify the process of amalgamating the superannuation balances of employees.
Speaking at a CEDA Conference, Costello said: “I have noticed . . . kids have got a whole lot of part-time jobs and every time they go to a new part-time job they seem to get a new industry super fund which send them messages; that you have now got $50 in your fund and account keeping fees are $5, and I am appealing to the industry here — we have to ease the ability to amalgamate small amounts.
“And I know that there are some steps that are being done, but you know, super will lose its appeal if it is difficult. And you know what I mean, I mean sometimes the forms they have to fill in to amalgamate these sums — and Generation Y don’t worry about forms — we have to ease the ability to amalgamate,” he added.
During his speech, the Treasurer also stressed the importance to have all of the new superannuation rules operational by July 1, 2007, to give the public confidence that the changes will not be reversed in the future.
“If we can get this system up and operating on the 1st of July, 2007, and we can get serious numbers of people engaged in it, the practicalities of reversing it will become much more problematic. But we have to get it up and running on the 1st of July and we have to get many, many people taking decisions on the back of it. If there is anybody that wants to circumvent it, obviously the earlier they get to it, the easier they will find it,” he explained.
Costello also revealed that during the formulation of the new superannuation legislation, the Government had considered abolishing the contributions tax but decided, given the history of the system, it would be too problematical to do so.
