Changes to superannuation fail basic trust test

Changes to superannuation fail basic trust test

INSISTENCE by the Liberals that their superannuation changes are not retrospective fails to convince anyone. They do not pass the “pub test”.

The changes are bad policy because they cause (further) distrust between government and voters.

They violate core Liberal principles in that they punish and deter sensible money management, thrift and self-reliance, whilst rewarding and encouraging welfare dependency.

That is the exact opposite of what is needed.

In 2016/17, the Government will spend $45 billion on the age pension, with that figure projected to rise to $51 billion by the end of the decade and not a word from either party about how to rein this in, even though compulsory super has been in for two decades.

The controversy over numbers affected by the changes is somewhat irrelevant (although significantly more than claimed by the Liberals), because once the argument is conceded that the Government may breach such fundamental principles, there is no defence against future changes that could bring the numbers down even further.

The changes are also ultimately self-defeating. If fewer people pay a growing share of taxes, they will rebel.

There is talk today of 49 cents in the dollar top rate.

That is nearly six months a year working for the government.

Why would anyone bother to try to better themselves?

Would parents today encourage their children to save for old age, given that the goal posts can be so easily (and frequently) changed.

JOHN RANDALL, Halls Head.