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

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

Warren Buffett's final lesson

I’ve long seen Buffett as a flawed genius: a great investor though a man with shortcomings. With his final letter to Berkshire shareholders, I reflect on how my views of Buffett have changed and the legacy he leaves.

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

13 ways to save money on your tax - legally

Thoughtful tax planning is a cornerstone of successful investing. This highlights 13 legal ways that you can reduce tax, preserve capital, and enhance long-term wealth across super, property, and shares.

Why it’s time to ditch the retirement journey

Retirement isn’t a clean financial arc. Income shocks, health costs and family pressures hit at random, exposing the limits of age-based planning and the myth of a predictable “retirement journey".

The housing market is heading into choppy waters

With rates on hold and housing demand strong, lenders are pushing boundaries. As risky products return, borrowers should be cautious and not let clever marketing cloud their judgment.

Latest Updates

Interviews

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will reverse.

Investment strategies

Solving the Australian equities conundrum

The ASX's performance this year has again highlighted a persistent riddle facing investors – how to approach an index reliant on a few sectors and handful of stocks. Here are some ideas on how to build a durable portfolio.

Retirement

Regulators warn super funds to lift retirement focus

Despite three years of the retirement income covenant, regulators warn a widening gap between leading and lagging super funds, with weak member insights and patchy outcomes measurement threatening retirees’ financial futures.

Shares

Australian equities: a tale of two markets

From soaring government deficits to the rise of network giants, equity markets are marked by persistent imbalance and rapid structural change. In this environment, opportunity favours those willing to look beyond the obvious.

Investment strategies

Dotcom on steroids Part II

OpenAI’s business appears commoditized and the model is not sustainable in the long run. If markets catch on, the company could face higher borrowing costs, or worse, and that would have major spillover effects.

Investment strategies

AI’s debt binge draws European telco parallels

‘Hyperscalers’ including Google, Meta and Microsoft are fuelling an unprecedented surge in equity and debt issuance to bankroll massive AI-driven capital expenditure. History shows this isn't without risk.

Investment strategies

Leveraged single stock ETFs don't work as advertised

Leveraged ETFs seek to deliver some multiple of an underlying index or reference asset’s return over a day. Yet, they aren’t even delivering the target return on an average day as they’re meant to do.

Sponsors

Alliances

© 2025 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.