Superannuation incentives must reduce welfare reliance: Morrison

Posted 2 February, 2016

Source: The Australian

Australia’s superannuation incentives must be made “fit for (the) purpose” for reducing retirees’ reliance on welfare, rather than “tax-free inheritance pools” for retirees’ children, Scott Morrison said today.

However, Mr Morrison expressed concerns about “retrospective” changes to superannuation arrangements for people who were already in retirement.

“Superannuation, I’m looking at as a whole, not just in terms of tax,” he told Sky News’s Australian Agenda.

“We’ve said the purpose of superannuation now and by definition then any tax incentives that are put into the system to support superannuation is to ensure that people would be less reliant, or not reliant at all, on a welfare payment — i.e. the pension — in retirement.

“There are a whole range of people for whom landing on the pension is not a reality for them, but there are particularly middle-income earners in particular … who are most likely to be drawing down heavily on a welfare payment.”

“Our argument on super is we’ve got to ensure the incentives are targeted to address the purpose and are not there as a form of building tax-free inheritance pools to pass on.”