Chris Bowen promises five-year freeze to superannuation policy if Labor re-elected

Updated

July 31, 2013 17:37:39

The Federal Government has promised it will make no major changes to superannuation for five years if it is re-elected.

Treasurer Chris Bowen announced the freeze today, saying he hoped it would promote confidence and stability in the system.

“This is about giving the Australian people certainty through law,” he said while in Brisbane for a Financial Services Council event.

“They deserve to know that the rules won’t be changed during the game.”

Mr Bowen also revealed Labor’s plans to set up an independent super council, which would work on any proposals for change during the five-year moratorium.

He says the council would have no regulatory powers or functions but will have the power to initiate its own inquiries.

But the body would make sure any proposals for change met an agreed charter of adequacy and sustainability.

“I know that what has come to be seen as regular changes under governments of all persuasions to the superannuation system have been undermining confidence and certainty,” Mr Bowen said.

“This makes clear that the Rudd Labor Government believes that superannuation should be dealt with and considered as a retirement incomes policy, not seen through the prism of the annual budget savings task.”

John Brogden from the Financial Services Council says it should cut costs across the sector.

“If there are no changes to superannuation there is no doubt that it will not only benefit consumers but it will benefit the industry,” he said.

“The cost of implementing the Government’s reforms for the retail financial services sector only has been an extraordinary $1.5 billion.

“So there is a cost that is associated with reforms and much of that gets passed onto the consumers.”

Topics:
superannuation,
business-economics-and-finance,
banking,
industry,
federal-government,
government-and-politics,
federal-elections,
australia,
brisbane-4000

First posted

July 31, 2013 17:36:31

Source Article from http://www.abc.net.au/news/2013-07-31/bowen-promises-five-year-freeze-to-superannuation-policy/4856748

You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes