No Budget changes to super

With just three weeks until the 2015/16 Federal Budget, changes to superannuation have been ruled out, despite calls for generous tax concessions for the wealthy to be scrapped.

According to YourLifeChoices 2015 Budget Submission survey, any review will be welcome, but it should be considered a priority. On the issue of superannuation concessions for the wealthiest 20 per cent of households, 85 per cent of respondents favoured an urgent review into the reduction of these, rather than amending the pension taper rates.

“I think that’s actually quite reflective of the general population,” Kaye Fallick told Fairfax chief political correspondent, Mark Kenny. “Finally super concessions are on the agenda and our audience is saying quite clearly that is a basket of revenue foregone that should be looked at before starting to look at a current proposal being put forward on the age pension which could hurt the most vulnerable.” 

The announcement by Assistant Treasurer, Josh Frydenberg, has left many asking where cuts or revenue raising initiatives will come from to address the estimated $45billion deficit. No changes to negative gearing and GST have been promised by the Coalition, so options are limited.

Frydenberg, one of six ministers involved in preparing the Federal Budget, has told Fairfax Media that super is safe. “The Prime Minister’s made very clear that we will keep our commitments not to introduce any unexpected or adverse changes to superannuation,” he told Fairfax Media. “I don’t think you should be expecting any big changes in this budget.”

However, he did concede that, in the lead up to the next Federal Election, it is likely that super would be addressed as part of a broader review of retirement incomes.


Written by Debbie McTaggart

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