Changes to tax on super ‘daft’, says Hockey
Treasurer Joe Hockey has justified the government’s moratorium on tax changes to super by labelling it “daft” to lay additional changes on those planning for their retirement.
In an address to PwC’s tax reform forum in Melbourne, Mr Hockey said the government continues to reject the view that the “solution to the nation's ills is to slug those who are taking responsibility for their retirement with higher taxes on superannuation”.
He reiterated the government’s pre-election promise to not make any adverse or unexpected changes to superannuation in its first term.
In addition, Mr Hockey suggested that tinkering with superannuation during a period of low interest rates worldwide could have a detrimental effect on superannuation savings.
“In the last six years of Labor there were 12 adverse and unexpected changes to superannuation. This followed Kevin Rudd's 2007 pledge not to change superannuation one jot or one tittle,” Mr Hockey said.
“Stability in tax policy is important, and even more important where individuals rely on the long-term stability of the rules around retirement savings.
“What self-funded retirees and part-pensioners need now, more than ever, is stability, not more tinkering with the system.”