National Seniors has cautiously welcomed the federal government’s announcement of a freeze on major changes to superannuation for the next five years - if Labor is re-elected.
The five-year freeze, starting immediately, means the rise to 12% employer super will go ahead, along with higher concessional caps and tax cuts for workers earning up to $37,000.
National Seniors’ chief executive Michael O’Neill said a freeze on super changes was good news but was cautious about the detail as well as its context in the government’s proposed broader economic statement.
“We’ve been calling for some years for the government to stop its constant tinkering with superannuation regulations and give people some certainty in their retirement planning,” O’Neill said.
Treasurer Chris Bowen says the policy will promote confidence and stability in the super system but opposition treasury spokesman Mathias Cormann dismissed it as lacking credibility, saying that Prime Minister Kevin Rudd had made a similar promise before the 2007 election.
National Seniors is now waiting for further economic moves in the government’s so-called mini-budget expected within days.