14 Oct 09 Minister's address on "Sustainable Super"
On 13 October 2009, the Minister for Financial Services, Superannuation and Corporate Law and Minister for Human Services, Chris Bowen, gave an address entitled "Sustainable Super: Building on Labor's Legacy" to the SuperRatings Conference held in Melbourne, Victoria.
The Minister noted that the interim report of the Henry Review found that a contribution rate of 9% provides for an adequate retirement income for most people. The Minister then said: "I believe that adequacy should be the minimum objective for retirement incomes. In other words, putting aside the debate over whether a 9% Superannuation Guarantee provides for an adequate retirement, we need a national discussion about whether to aim for something better than adequacy."
In relation to tax concessions for contributions, the Minister said: "Tax concessions for low and middle income earners to save through super are less than those for high income earners. The fact that the top 5% of contributors make around a quarter of all concessional contributions to superannuation - while 1.2 million people do not receive an income tax benefit on their concessional contributions - is a compelling one. So equity will also be a driving factor in our discussions about the eventual recommendations of the Henry review and the debate on adequacy more generally."
For a copy of the Minister's address, go here