Garnaut says super shouldn't be hands off

Written By Unknown on Rabu, 27 Maret 2013 | 19.50

LEADING economist Ross Garnaut says Australia's superannuation scheme shouldn't be untouchable for a government looking for budget savings.

Speculation that "rich" people will see their super tax concessions eroded further have swirled for many weeks.

Finance Minister Penny Wong on Wednesday hinted at possible taxation changes to the superannuation system in the May budget, while the federal opposition continued its attack on this potential cash grab by the government.

Professor Garnaut said while he hadn't taken a close look at exactly what was being discussed, superannuation "shouldn't be untouchable".

"Some of the concessions to superannuation that were made during the high points of the boom half a dozen years ago were unrealistic," he told ABC TV from England.

He said that during the past decade or so governments made "a lot of middle class welfare, a lot of unaffordable reductions in tax, a lot of pretty sloppy increases in expenditure" that needed to be tightened up.


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