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."

 

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

Latest Updates

Investment strategies

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Planning

Super, death and taxes – time to rethink your estate plans?

The $3 million super tax has many rethinking their super strategies, especially issues of wealth transfer on death. This reviews the taxes on super benefits and offers investment alternatives.

Taxation

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Shares

The megatrend you simply cannot ignore

Markets are reassessing the impact of AI, with initial euphoria giving way to growing scepticism. This shift is evident in the performance of ASX-listed AI beneficiaries, creating potential opportunities.

Gold

Is this the real reason for gold's surge past $3,000?

Concerns over the US fiscal position seem to have overtaken geopolitics and interest rates as the biggest tailwind for gold prices. Even if a debt crisis doesn't seem likely, there could be more support on the way.

Exchange traded products

Is now the time to invest in small caps?

With further RBA rate cuts forecast this year, small caps may be key beneficiaries. There are quality small cap LICs and LITs trading at discounts to net assets, offering opportunities for astute investors.

Strategy

Welcome to the grey war

Forget speculation about a future US-China conflict - it's already happening. Through cyberwarfare and propaganda, China is waging a grey war designed to weaken democracies without firing a single shot.

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.