20 May 2010

Coalition Silence on Super Broken by a Backflip

Those 8.4 million Australians disappointed at the Coalition's opposition to an increase in their retirement incomes were dealt a further blow today with Andrew Robb's confirmation of another Coalition backflip, this time on superannuation.

Andrew Robb, in the space of one sentence towards the bottom of a media release he issued today, has both confirmed that the Coalition is the enemy of Australians seeking a decent and dignified retirement and shattered any semblance of a reputation the Shadow Minister for Superannuation, Luke Hartsuyker had left.

Mr Hartsuyker recently outlined that the Coalition would look to reinstate the pre-2008 superannuation contribution concession caps. (Speech to AIST Conference, 19 April 2010)

Perhaps Mr Hartsuyker thought that his speech was being made in the heat of the moment and therefore not a statement to be taken as gospel truth.

Less than a month later, buried in today's media release, Andrew Robb confirmed that 'the reinstatement of 2008 concessional caps on superannuation' was 'no longer Coalition policy'.

Mr Hartsuyker has taken a leaf out of the book of his leader who railed against any new tax before announcing in quick time his great big new tax on business to fund the Coalition's paid parental leave scheme.

The Shadow Minister has earned a fine reputation as the Shadow Minister Against Superannuation.

To date, the Coalition has confirmed that it is opposed to:

  • The Rudd Government's Stronger and Fairer Superannuation reforms, which include the increase in the Super Guarantee from 9 to 12% and would see an 18-year old who enters the workforce today, on average weekly earnings, receive an additional $200,000 in retirement.
  • The Rudd Government's Future of Financial Advice reforms, which include removing conflicts of interest and commissions from financial advice and introducing a new adviser charging model that empowers investors to pay and receive the financial advice that they want.
  • The Rudd Government's Small Business Super Clearing House, a measure that passed the parliament despite Coalition opposition, that will reduce red-tape and allows small businesses to access a free clearing house service that also acquits their superannuation guarantee obligations
  • The Super System Review ('Cooper Review') which is examining the structure, costs and efficiency of the superannuation system, and is due to be handed to the Government on 30 June.

As of now, the only superannuation policy the Coalition has is that articulated by the Leader of the Opposition in Battelines, which is for the effective dismantling of Australia's superannuation system and the tax concessions that underpin it.

The Government's Stronger and Fairer Superannuation reforms includes new $50,000 contribution concession caps for those over the age of 50, so workers approaching retirement can make 'catch-up' payments, but at a concessional tax rate.

There is no question that the Rudd Labor Government is not only the best friend that superannuation has ever had, but it's only friend.

CANBERRA
20 May 2010