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Dr. Mark Sinclair
Dr. Mark Sinclair, Mentor Education

Treasurer contradicts superannuation promise

5 August 2013

The Federal treasurer Chris Bowen has shocked industry wealth executives by reneging on a promise that the government would ‘refrain from making any changes to superannuation policy for five years’.

The promise made only days earlier was amended last Friday when Mr Bowen and Finance Minister Penny Wong announced that the threshold below which small and inactive super accounts are automatically transferred to the Australian Tax Office would be raised from $2000 to $4000 in December 2015 and to $6000 from December 2016.

This recent backflip comes after the government ‘s pledge that any potential changes would be assessed by “a new advisory body, the Super Council, ensuring policies were consistent with agreed objectives, such as adequacy and sustainability of the system” Bowen said last week in a speech at the Financial Services Council’s annual meeting in Brisbane.

Industry executives have acted strongly to the backflip commenting that the changes have nothing to do with improving or streamlining the industry, but more to do with fixing the budget using the super pool.

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