The Treasurer remarked that only the third objective had been achieved and, “in relation to the first two objectives – these can now be merged by stating our objective on enabling Australians to achieve a better standard of living and independence in their retirement”.
He went on to speak at length about superannuation in the future and wanting to give people more independence in their retirement.
“We want as many Australians as possible to actively plan and save for their retirement, to harness the benefits that the superannuation system offers, and to work towards a self-funded retirement”, Mr Morrison said.
Tax reform on superannuation was another key issue in the Treasurer’s speech, and he enthused that “it is not my money, nor the Government’s money. It is your money”, then reiterated that super needs to “substitute or supplement the Age Pension”.
“The age pension continues to provide an important safety net for Australians who do not have the ability to provide for their retirement futures”.
Mr Morrison admitted the struggle the government has with people who do rely on the pension: “we might want to reduce reliance on the age pension but, on the other, this comes at a cost to Government”.
“Let me make one thing very clear though: while superannuation should ensure adequate retirement incomes, it should not be seen as an open-ended savings vehicle for wealthy Australians to accumulate large balances in a tax-preferred environment, well in excess of what is required for an adequate retirement.
“It is not an estate planning vehicle nor was it ever intended to be”.
He said it is vital for Australians approaching and enjoying their retirement, as “retirees have saved for their retirement under the existing rules across their working lives”, and “the Government acknowledges these efforts and sacrifices”.
“Because until tax concessions and the superannuation system are perceived to strike the right balance, there’ll continue to be calls for tinkering and more changes”.
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