TONY EASTLEY:
Former Prime Minister Paul Keating likes to re-enter the political ring from time to time. In his latest foray he's had a bit of a poke at old foes and criticised the methods of the Labor Party, saying the Rudd Government lacks focus and is short changing superannuation policy by not raising employer contributions.
The Federal Government will review the nation's super system as part of its look at the tax system, but it's far from endorsing Paul Keating's suggestion for compulsory superannuation to rise from nine to 15 per cent.
From Canberra, Samantha Hawley reports.
REPORTER:
Paul Keating says for the nation's baby boomers it's too late to make up lost ground.
PAUL KEATING:
I wanted for Australia to go to an income replacement system. You join the workforce in your 20s, you retire at 60, you pay 15 per cent into super, you go out of work on the same salary in retirement that you finished your last week you finished on at your last week at work.
REPORTER:
The former Prime Minister's desire for a 15 per cent superannuation contribution wasn't realised under the Howard Government, and he admits there's not much enthusiasm for change from the Rudd Government either.
PAUL KEATING:
No, but I think there is some interest. The Treasurer said he thinks it would be wise for the superannuation system to move to 15 per cent.
REPORTER:
But the Treasurer, Wayne Swan made those comments before the election and he's much more cautious now, so is the Minister for Superannuation, Nick Sherry. He says it will be looked at as part of the Government's review into the taxation system.
NICK SHERRY:
Well Paul has a long-standing and deep interest in superannuation and he's entitled to his views.
REPORTER:
You don't agree that we need to lift the amount of super people are putting aside?
NICK SHERRY:
Well I do agree we do need to add to the superannuation system in terms of adequacy and we've got the Henry tax review process and that will deal with it.
REPORTER:
Sorry, the tax review will be looking at lifting the superannuation rate to 15 per cent?
NICK SHERRY:
It is looking at dealing with retirement incomes in general, including the aged pension.
REPORTER:
But you don't seem inclined to lift the super rate to 15 per cent.
NICK SHERRY:
I don’t seem inclined to pre-empt the outcome of the Henry tax review.