The ageing of the population is one of the most important challenges facing the Australian economy over the coming years.
Superannuation and retirement policy must be at the core of a strong and sustainable economy.
That is why it is so astonishing that in Kim Beazley’s speech to the International CEO Forum last week, entitled Nation Building for the Modern Economy, there was not one mention of where Labor stands on superannuation.
This was supposed to be a ‘blueprint’ for Labor as the alternative government, however Kim Beazley was still unable to say whether or not he will support Australians saving for their retirement.
It’s now been 124 days since the Federal Budget and Kim Beazley still refuses to support the Government’s superannuation reform package.
It seems Kim Beazley still has a ‘three minds policy’ on super – ‘yes’, ‘no’ and ‘maybe’.
By contrast, last week the Government fully delivered on its commitment to help Australia’s small business people to save for their retirement.
Self employed Australians will be able to contribute up to $1 million over their lifetime from the sale of small business assets which have been held for 15 years.
This is over and above the announcements made on Budget night, when the Government announced it was ending the injustice of different treatment between employees and the self employed in superannuation.
From 1 July 2007, for the first time, the self employed will be able to claim the same deductions as contributions made on behalf of an employee.
Like other Australians who have already taken advantage of the Government’s generous co-contribution scheme, the self employed will also get access to the scheme, which delivers up to $1,500 into the super accounts of low and middle income earners as an incentive to save for their retirement.
Only the Howard Government has the experience and strength to maintain our nations’ economic prosperity.