Threat of super tax cuts gains traction

Tim Stewart / Thursday, 17 March 2016 / 0 Comments

The federal government has again flagged changes to superannuation "tax incentives" in the May budget to ensure Australia's retirement system is "fit for purpose".

Treasurer Scott Morrison told those gathered at the Australian Financial Review Business Summit in Melbourne yesterday that the government was committed to enshrining the purpose of superannuation in legislation.

"Any changes that we make to superannuation will be about that purpose and making it fit for that purpose," Mr Morrison said.

"How tax incentives are structured will no doubt form part of these changes, but the changes will be about delivering a fairer and more sustainable retirement income system for our 21st century economy, building on the pension reforms in last year's budget," he said.

"Where you have to target and make every incentive work for you is on those Australians who are most likely to be at risk of being dependent on a welfare payment into their retirement."

Mr Morrison also stressed that superannuation was "not an estate planning tool".

"That is not what superannuation, we believe, was designed to be. It was designed, as I said, to help people who might have otherwise been on the pension to have a pool of retirement savings that they can draw down on to live on and to enjoy a quality of life in their retirement that they have worked hard to achieve," he said.

Mr Morrison said any changes to the superannuation system would not be about "revenue raising".

"It is not about higher taxes to fund higher spending. It's about a better retirement incomes system,"
the treasurer said.

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