The activity surrounding the superannuation changes announced on budget night went into overdrive last week as people digested the measures that the Coalition looks to introduce.
Typically we see a process following Budget night whereby these measures are introduced as Bills into Parliament to enact these as laws – this requires the Bills having to successfully pass through the House of Representatives, then the Senate and finally onto receive Royal Assent. However, this was clearly never going to be the case, with the now election called and the Government having moved into Caretaker mode. What we saw on budget night was effectively election promises, nothing more, nothing less…
Unfortunately though, we can’t take these election promises lightly as we know the way forward with super policy under a Coalition Government if re-elected.
On Thursday night we saw the Opposition Leader, Bill Shorten deliver his budget reply. Again, it wasn’t so much a reply, but an opportunity to present Labor’s blueprint to gain office come July 2. Superannuation is also a central plank of Labor’s reform by redistributing the tax concessions.
So how do the party’s stack up? I’ve put together a summary below that compares what we know about both parties and changes to superannuation:
So, here’s the problem as I see it…
We have measures that impact retirement planning today, with potentially a level of uncertainty that could exist for 4 months or more. Subject to who is elected, it could have a detrimental impact on a person’s ability to contribute money into super between now and 30 June.
Ordinarily, the decisions on such proposed measures would be debated, defeated, amended and potentially progressed through the various houses. At least the time frames were such that we could gauge if and how these measures would impact an individual’s decisions going forward. At the moment, it would be fair to say that the next 3-4 months are going to provide nothing more than confusion – this is because we lack policy detail to help us understand what change lies ahead. Ultimately, all we’ve got to look forward to in the immediate future is 8 arduous weeks of campaigning in the lead up to the federal election (#shootmenow).
To find out more about each party’s respective policies:
- Coalition – http://budget.gov.au/2016-17/content/glossies/tax_super/html/
- Labor Party – http://www.100positivepolicies.org.au/keeping_super_fair
PS. I’m providing regular Facebook “live” videos on the budget and other super topics – you can like at http://www.facebook.com/thesmsfacademy