Costello 2006 Budget Superannuation Proposals

In May 2006 Treasurer Peter Costello released ‘A Plan to Simplify and Streamline Superannuation’ as part of the Government’s policy response towards both superannuation and Australia’s ageing demographic. It is a broad-ranging policy response to Australia’s exceedingly complex superannuation system.

While the Democrats support simplification of the current superannuation system we have some reservations about its fairness. For example, taxpayers over 60 years of age will benefit most; wealthier retirees will benefit more than the less wealthy; and the removal of the reasonable benefits limits seems to be aimed primarily at the better-off and wealthy, as most people do not currently breach the current reasonable benefit limits.

As the superannuation portfolio holder for the Democrats, Senator Murray has issued a preliminary discussion or advisory paper on the Government's plan, for Democrat members and members of the public to refer to. The Government's proposals are not yet in legislative form, so this paper takes a broad view of what is proposed.

Read the full Costello 2006 Budget Superannuation Proposals Discussion Paper here