Peter Costello is worried about your superannuation

Former treasurer and now Future Fund chairman Peter Costello believes that constant changes to our superannuation is “killing public confidence

Former treasurer and now Future Fund chairman Peter Costello believes that constant changes to our superannuation is “killing public confidence in the system”.

During his time in the Howard government, Mr Costello overhauled Australia’s entire superannuation system. Today, Mr Costello says government changes to super makes people feel it’s “not a very safe investment”.

Mr Costello pointed the finger at proposed tax changes, which he says creates “enormous complexity” within our super.

“The complexity is killing public confidence in the system”, he told a forum in Asia. “We are asking people to put money into the system for 20, 30, 40 years to prepare for their own retirement”.

“All they see is that every time the government gets into trouble it comes around and taxes (superannuation) more… I think people could start drawing the conclusion that it was not a very safe investment”.

However, Mr Costello (who occupied government from 1997 until 2007) argued that superannuation should be our safest investment as Australians.

“(Superannuation) is locked up for 40 years but apparently it is not locked up against the government”, he said. “The tax regime depends on the state of the budget in any one year”.

Under Malcolm Turnbull, the federal government plans to tax high income earners a greater amount against their superannuation.

Meanwhile, the Labor Party has signalled its intention to tax superannuation earnings above $75,000 during each year of our retirement.

Mr Costello thinks less changes would create a more assured environment for people, when it comes to their superannuation.

“There is a public good in having certainty. We want people to save and we will eventually save it on their pensions”, Mr Costello said.

Do you agree with our former treasurer? Do you have faith that modern politicians will protect superannuation and our savings?

  1. Noel Baxendell  

    Big business and high income individuals demand certainty. So apparently we cannot touch tax concessions for those with huge super balances.

    But for everyone else uncertainty is OK. The pensioner who can no longer be certain that his or her doctor’s visits will be bulked billed. The university student who can no longer be certain that the HECS debt for his course will remain the same – his degree could now cost him $100,000 0r $200,000. The retain or hospitality worker who could see an end to their penalty rates and their incomes slashed by 20%.

    Please give us a break.

  2. Frank forshaw  

    Widely respected ,was there a poll on Costello that’s missed ! Because no one asked me for my opinion of him

  3. Alan  

    Costello was one of our laziest, worst treasurers in modern time. In concert with Howard, he squandered our national income at a time when it was ‘rolling’ in by giving tax cuts and spreading largesse to ensuring their own popularity. We should today have a huge sovereign wealth fund benefitting the nation for generations. Instead we have debt.

  4. Ian  

    One superannuation for all 12% into fund and when you retire you get your average wage paid to you no withdrawal and you get it tax free until you die if your partner hasnt worked it travels with them when you die it goes into an infrastructure fund end result everyone retires on an acceptable income politicians public servants and private enterprise people. Gets rid of pensions to all and you have working capital for infrastructure,no self funded either if you want to buy houses and assets so be it but it doesnt affect your retirement K.I.S.S.

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