Welcome to Tasplan

The Federal Government is to be applauded for at last taking steps to remove responsibility from future generations for the massive unfunded superannuation liability for Commonwealth employees ( currently $91 billion ) in its 2005 Budget. But with successive surpluses assured and the Government of a mind not to saddle future generations with a massive debt burden, the Treasurer could have also turned his attention to another looming problem. By 2044, roughly a quarter of Australians will be aged 65 or over - more than double the present proportion. Add to this the fact that Government spending on health and aged care is projected to more than double by 2041/ 42 and age and service pension costs will rise 50%. Instead of building on the substantial progress made in establishment of a sustainable retirement income strategy, Government spin doctors are on the streets trying to get us used to the idea that we will need to work well beyond the current retirement age. Instead of getting us used to the idea of working beyond age 65, the Government should be moving to consolidate the progress it has made in building a sound superannuation system. It is universally acknowledged that the current 9% Superannuation Guarantee is inadequate to provide Australians with a comfortable and financially secure retirement. Whilst the Government says it is reluctant to saddle business with any requirement to pay a greater amount of super, it has many other alternative options to improve superannuation outcomes for Australians. It could ; -

reduce the level of Contributions tax (currently 15% )improve it's Co-contribution Scheme introduce a rebate to super funds for the cost of Member Benefit Protection
increase the 9% SG with its own co-payment

Any one of these measures would have helped to address the massive and mounting cost for future generations of supporting so many Australians of retirement age. It is hoped that the Federal Government will grasp the opportunity to address this inter-generational issue in the near future.