Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 118

Hockey on super at Tax Reform Summit

This is an extract from the Federal Treasury website on Joe Hockey's speech to the PwC Tax Reform Summit on 15 July 2015. The bold sections are my emphasis. Whereas it appeared a month ago that both Treasurer Hockey and Assistant Treasurer Josh Frydenberg were looking to the Tax White Paper process for changes to superannuation, the politics have shifted and a 'no change' position is firmly stated. But perhaps the door of change is ajar, rather than closed. Look at the exact words: "Nor do we have plans to increase superannuation taxes into the future." Plans. It's not quite as strong as words used by the Prime Minister.

"So timely and measured reform ensures that our quality of life and our living standards continue to improve over time.

Australians recognise this and I have been encouraged by the contributions from the community to the tax discussion paper.

We have received more than 800 submissions (including two from PwC).

We have seen the emergence of a consensus

There's an understanding of the need for change. No submission has argued for the status quo – that the existing taxation system is fair or future ready.

Australians want a tax system that is simpler, more certain and competitive. They believe any reform must include state taxes, which are some of the most inefficient in the country.

Views are mixed when it comes to negative gearing and capital gains tax, but there is strong support for the retention of our system of dividend imputation.

As everyone in this room would know, there has also been a lot of talk about superannuation tax concessions. Some believe that the solution to the nation's ills is to slug those who are taking responsibility for their retirement with higher taxes on superannuation.

This government absolutely rejects that view. As we promised prior to the last election, we will not engage adverse or unexpected changes to superannuation in our first term of government. Nor do we have plans to increase superannuation taxes into the future.

What we need is stability in the system.

Superannuation policy is incredibly complex. Its tax treatment even more complicated.

So adding to the complexity by laying on new additional changes is daft.

In the last six years of Labor there were 12 adverse and unexpected changes to superannuation. This followed Kevin Rudd's 2007 pledge not to change superannuation one jot or one tittle.

Stability in tax policy is important, and even more important where individuals rely on the long term stability of the rules around retirement savings.

What self-funded retirees and part pensioners need now, more than ever, is stability not more tinkering with the system.

During a period of low global interest rates, which can have a significant impact on superannuation balances – plus the volatility in the world economy – why would a government want to increase taxes on super?

Superannuation is not the government's money; it is the money that belongs to the Australian people – and the Australian people deserve better than to have governments continually mucking around with the rules or treating their savings as a piggy bank."

 

  •   16 July 2015
  • 1
  •      
  •   
banner

Most viewed in recent weeks

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

10 things I learned about dementia and care homes from close range

My mother developed dementia before eventually dying in June last year. She was in three aged care homes before finding the right one. Here is what I learned along the way.

Latest Updates

Taxation

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

Property

It's okay if house prices drop

The assumption that falling house prices are electorally fatal has shaped policy for decades. Evidence from upzoning suggests affordability can improve without reducing overall housing wealth.

Investment strategies

Investment bonds for intergenerational wealth transfer

Investment bonds can be a versatile and a tax-effective option for building wealth for longer-term investment goals. They can also be used as an estate planning tool, enabling the smooth transfer of wealth to younger generations.

Investment strategies

Why switching to income may make sense in 2026

Investors are jumpy as valuations continue to rise and income investing may provide a respite. In a challenging market for income investing AML offers their top picks.

Interviews

Retiring Schroders boss on lessons he’s learned, industry changes, and the market outlook

CEO Simon Doyle is retiring after 38 years in the finance industry. In an interview with James Gruber, he shares the three main lessons he’s learned, and where he sees opportunities and risks in markets today.

Investment strategies

How US midterm elections affect the markets

Investors may overlook the US midterms amid global events, but they could still impact markets. History shows markets react during midterm years, with increased volatility and lower returns. Will this year be any different?

Investing

Does increasing geopolitical risk lead to higher equity market returns?

Increasing geopolitical tensions has investors on edge but one study shows evidence of a war premium for equity markets.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.