Superannuation system not fit for purpose, says Chris Bowen

Superannuation system not fit for purpose: Chris BowenShadow Treasurer Chris Bowen has said the superannuation system is not fit for purpose, following the release of the Government’s Tax Discussion Paper, the first stage in the Tax White Paper process.

Speaking to RN Breakfast, Chris Bowen said “I do think there is a case for improvement when it comes to superannuation. I don’t think the current system is fit for purpose and I do think we need to be robust in that approach and our consultations are continuing.”

“As I said recently where you’ve got the situation where the vast majority of tax concessions go to people on high incomes who don’t need, and wont need, the age pension regardless of how many tax concessions you give them that’s not a system fit for purpose.”

“So we’re leading that discussion, we’re leading that discussion from opposition.” To this end Labor has been consulting “very broadly with the superannuation sector.”

Chris Bowen had previously indicated there may be bipartisan support for a legislated objective for superannuation, as recommended by the final report of the Financial System Inquiry. The extent of bipartisan support for superannuation tax reform is as yet unclear.

Treasurer Joe Hockey said that any changes to superannuation have “got to be on a prospective basis.”

“Superannuation is a very good example where governments come along and constantly tinker at the edges and sometimes make substantial changes when people have spent all of their working life contributing to superannuation and expect that the system will be consistent for their retirement,” Mr Hockey said.

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