‘Coming clean’ on super?

Older Australians have welcomed the federal government “coming clean” on its superannuation plans but say the concessional cap increase has fallen short of expectations.

“Speculation that retirement savings would be raided to prop up the budget has created nervousness amongst older Australians,” said National Seniors chief executive, Michael O’Neill.

“The government has done the right thing in coming clean today,” he said. “We welcome that the changes are not retrospective and that grandfathering applies to some of them.”

Mr O’Neill said the $100,000 retirement phase tax free earnings threshold which equates to a super balance of around $2 million appears “fairly generous”.

However, Mr O’Neill added the concessional cap increase to $35,000 had fallen short of expectations.

“The $10,000 increase in the $25,000 superannuation concessional cap for people aged 60 and over is welcome.

“But it is still $15,000 short of the $50,000 cap average earners had counted on last year and the government had promised for 2014.”

The cap, which had been halved in 2011, and extended for two years, had been expected to increase to $50,000 in 2014 for people aged 50 years and over.

“To avoid a repeat of this type of politicised speculation, future debate must occur within a wider, transparent, cross-portfolio retirement incomes strategy,” he said.

“This is something National Seniors has repeatedly called for,” Mr O’Neill added.

National Seniors will be looking into the announcement in more detail over the coming days.