Sharechat Logo

AMP rails against Australian government tinkering with superannuation

Thursday 10th May 2012

Text too small?

Australia-based insurance giant AMP is railing against the Australian Federal government tinkering with superannuation.

Commenting on the Australian government's budget changes to that country's compulsory superannuation system, AMP chairman Peter Mason said the government should take a long-term view.

“We need to be alert to the consequences of tinkering with it and potentially muting its effectiveness,” Mason said.

While AMP supports lifting superannuation contributions to 12 percent of income from 9 percent, “when there is continuous amendment to the framework for Australia's long-term savings, people feel they can't rely on it to make long-term plans,” he told AMP's annual shareholders' meeting.

“Constant changes to Australia's superannuation system, as we saw again in Tuesday's budget, unsettles people and makes them anxious about the future,” he said.

The greatest contribution government could make right now is to provide certainty and security, so people can save with confidence in the future, Mason said.

Superannuation is a long-term response to a long-term demographic and economic challenge and shouldn't be continually modified to meet short-term budgetary objectives, he said Mason's words could equally be applied to New Zealand's KiwiSaver scheme, which has gone through a raft of changes since its inception in July 2007. New Zealand's budget is due on May 24.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures
Heritage buys Golden Healthcare; not mystery Metlife suitor
Alliance margins improve as swine fever boosts global meat prices
RBNZ eyes Westpac Australia money laundering failures
Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years

IRG See IRG research reports