Abbott slammed for super stance

Prime Minister Tony Abbott’s refusal to reform superannuation could make the system more vulnerable, one of the nation’s leading financial system experts has said.

Mr Abbott has repeatedly ruled out making any changes to superannuation, despite concerns from experts that the system protects wealthy retirees from paying tax.

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Financial System Inquiry chairman David Murray told Fairfax the government needed to move to preserve public confidence in the country’s retirement savings regime, including the relationship between super, the age pension and the housing market.

“If the system is left as it is, it means that people who have money in the system [will continue] to understand so little about how it works generally and how it benefits them,” he said.

“Disengagement drives politicisation of the system and people will start to question why we have it,” said Mr Murray.

On Wednesday, Assistant Treasurer Josh Frydenberg reiterated the government’s commitment not to any big changes to super.

However, he said that the government remained committed to its plan to lift the superannuation guarantee to 12 per cent by 2025.

He also said the government expects to make some changes to allow longevity insurance products to be included under superannuation taxation rules.

– with AAP

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