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We have been keeping you abreast of political announcements on the superannuation front since February this year: see Super Update and Super Election.
With 10 days to go before the Federal Election to be held on 7 September, it's timely to revisit the major parties' policies.
- The 5 April 2013 statement by then treasurer Swan and superannuation minister Shorten put an end to much speculation that the tax breaks on super would be cut. Superannuation as a short term revenue fix was largely off the agenda.
- Treasurer Chris Bowen announced on 6 August 2013 that the ALP government would not make any "major changes to superannuation tax policy" for five years.
- The Coalition Liberal/National Opposition has met this with a pledge not to implement any "detrimental changes" to superannuation.
This means:-
- The increase in Superannuation Guarantee to 12% will continue (the first increase began 1 July 2013) under the ALP but would be frozen at 9.25% for two years by the Coalition if elected, then the increase to 12% would be delayed by two years.
- The Liberals have said they will wind back the Low Income Super Contribution (LISC) which refunded the 15% contributions tax for Australians who earn less than $37,000 a year. At the time this was introduced in 2012 by the ALP government, it was to be funded by the mining tax revenues, which, as we now know, have not eventuated.
- The higher concessional caps will remain in place under the ALP and are likely to remain under the Coalition (as yet silent on the issue).
- If the ALP is re-elected, legislation to establish its proposed Super Council will be brought forward so any future changes to legislation are consistent with an agreed Charter of Superannuation Adequacy and Sustainability. We don't know the attitude of the Coalition to the enabling legislation for the Super Council.
The Coalition intends to conduct a tax review in its first term but details are not yet available.
