Super not a piggy bank: Shadow Treasurer

Oksana Patron

27 February 2023

Super is fundamentally Australians’ money and it should not be used to ‘plug revenue gaps’ or become an alternative source of government spending, Shadow Treasurer, Angus Taylor, told the ASFA conference in Brisbane.

Speaking on the future of superannuation system and public policy for super, Taylor stressed the importance of stability and certainty of the entire system, and warned that the Government should be ‘extremely cautious’ about raising on tax on Australians super.

“These are private savings. Fundamentally super is Australians’ money, not the Government’s. And this is essential in considering the purpose of super,” he said.

Taylor also reminded that the superannuation system was designed to take pressure off the budget, not supplement it, and it was never envisioned that super be used to plug revenue gaps or become an alternative source of government spending.

“Superannuation is Australians’ money. It is not a piggy bank to be spent or taxed to fill budget holes.  Labor does not have a mandate to tax and spend Australians’ super. “

And any changes made to the way the super is taxed, should be “conservative, and measured, and responsive to the real gaps that exist in the system, rather than the whims of governments of the day”.

“The entire super system is undermined when parties break election promises, particularly when it comes to the tax arrangements on superannuation,” he said.

But at the same time, shadow treasurer said that it was not sufficient for a compulsory retirement system to stay silent on the issue of home ownership.

“This is why in the Budget Reply, Peter Dutton recommitted to supporting the limited use of superannuation to support first home owners, and women over 55, for a deposit for a home – while preserving any capital gains back into their superannuation funds,” he noted.

Commenting on the improved awareness and education in the financial services sector, Taylor said access to advice, along with availability of information,  was essential to supporting strong outcomes for the Australian superannuation system.

“As it stands, too many Australians are cut out of access to financial advice. This affects not only their awareness of their retirement options, but their satisfaction with their investments.

“It is encouraging to see the Treasurer on Monday voice support for the Levy Review and its potential to support innovation in financial services and financial advice.

“We need a commitment from the Government to implement this review, which was a key part of the response to the Hayne Royal Commission. Every day the Treasurer drags his feet, Australians lose out.”