MEDIA RELEASE
FOR
IMMEDIATE RELEASE
8 March, 2000
SUPERANNUATION DISCUSSION WELCOMED
"The industry welcomes the news that the Government Actuary
will be issuing a discussion document seeking industry views on how to define a
superannuation scheme," says Vance Arkinstall, Chief Executive of the Investment
Savings & Insurance Association.
The industry supports the Minister of Finance’s statements
that he favours higher earners directing earnings into registered schemes and benefiting
from lower tax at 33%, provided that there is no abuse of the taxation system and the
savings are locked in for retirement purposes.
"The industry believes that adequate controls against abuse
already exist within existing superannuation scheme legislation administered by the
Government Actuary. The industry has been working with Government and the officials on how
these powers should be applied and strengthened where necessary. It is good to see that
wider views will be canvassed," said Mr Arkinstall.
"The industry has strongly opposed changes which would have
placed additional administration costs, complexities and limitations on employers, as some
of the initial proposals including the 10% cap had proposed. Employer sponsored
superannuation has suffered from an increase in complexity and compliance costs in recent
years, resulting in a significant decline in the number of employer sponsored
schemes," Mr Arkinstall said.
"For superannuation savings to increase we must find ways to
unwind many of the complexities that have developed over recent years," said Mr
Arkinstall.
"The industry is expecting the Minister shortly to announce
an approach that will provide protection against abuse as well as encouragement for high
earners to increase legitimate long term savings in a manner that does not impose onerous
obligations and further complexity on the employer," Mr Arkinstall said.
Ends
Vance Arkinstall
Chief Executive
ISI
