Leading seniors advocate COTA Australia has called for a comprehensive look at superannuation policy to ensure individual decisions, such as those announced today, were part of a clearly articulated long-term plan for the system.
COTA Australia Chief Executive Ian Yates said the foreshadowed Financial Services or Taxation Reviews could be a vehicle for such reviewing current superannuation goals and policy settings.
“Announcing tax cuts on superannuation earnings of more than $100,000 in isolation is as arbitrary as the original decision to set those taxes – it does not address the growing concern among policy makers that current superannuation tax arrangements are not sustainable long-term as the number of people in the population increases and our working population decreases,” Mr Yates said today.
“Similarly cutting superannuation payments to low income workers without a discussion of how lower incomes people’s retirement incomes can most effectively be enhanced is poor policy.
“With a growing ageing population, superannuation has become a key national priority.
“It’s important that we get the system right so every older Australian can get the most out of their retirement years – with dignity, quality, support and choice – and with certainty.
“The Federal governments should facilitate through the Financial Services or Taxation Reviews, or other mechanism, a community debate on what people expect from their retirement years – and the best ways of meeting those needs and expectations.
“This requires input from all stakeholders including treasury, super funds, healthcare and aged care organisations, civil society groups, unions and representatives of older Australians to talk about the future direction of superannuation.”
COTA’s election platform identified some of the key issues for the government’s consideration:
- abolish the upper age limits on personal contributions to superannuation
- develop and deliver a National Mature Age Workforce Plan, allowing people to work for longer if required and continue to make contributions to super
- reform commissions earned on superannuation products, considering a full ban on commissions
- ensure lower income earners and women are not disadvantaged when it comes to retirement income
“Investment in a better superannuation system now will deliver a better future for older people for generations to come,” he said.
Media contact: Ian Yates 0418 835 439, Jane Garcia 0434 489 533
