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

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Do super funds need a massive wake up call?

UK retirement expert, Guy Opperman, believes super funds are failing at supporting members in deaccumulation. Here is what Australia should do about it. 

Two months into retirement

A retirement researcher's take on retirement and her focus on each of her six resource buckets to stay engaged during the transition and beyond.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

Reforming the taxation of wealth and wealth transfers

As the budget approaches debate continues about the need and method for addressing wealth inequality. Could reinstating wealth transfer taxes be the answer?

Latest Updates

Back to the future - Why indexing CGT is a good idea

A return to indexation of capital gains would be a fairer way to compensate households for the effects of inflation than the current discount. Importantly, it opens the door to future, broader reforms to stop the taxation of inflation.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Strategy

The folly of the Iran war

From oil shocks to fractured alliances, the Iran war carries the hallmarks of a historic policy misstep - one that could tip an already fragile global economy into crisis.

Taxation

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Investment strategies

The red metal's long game

Copper has had a rough few weeks but investors should not ignore the potential for future price increases as supply increasingly falls behind demand.

Taxation

The lesser-known effects of changed property taxes

The budget’s property tax reforms are being framed as fairness measures, but they risk splitting the housing market, penalising lower‑income investors and introducing distortions that may prove costly.

Latest from Morningstar

Why stocks sometimes fall for no obvious reason

The vast and opaque world of private assets is a powerful gravitational force - and when trouble hits, it's the more liquid public equities that often the feel it first.

Sponsors

Alliances

© 2026 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.