“It corrects by some measure the unsustainably generous Costello tax changes which dismantled the former reasonable benefit limits structure in favor of an open ended tax-free regime,” Keating said.
Keating maintains that superannuation system would work like a retirement income system to boost the age pension.
Earlier, the Financial Services Council alleged that it was not taken on board regarding the taxation of superannuation earnings. The council also said that the elements of the package announced today were extremely inconsistent with the government’s remarks in recent months.
“It’s in the interests of all Australians that this new set of proposals have some certainty around them before the election. We think the decision to tax people at all in the retirement phase is inconsistent with what the government has said in recent months,” FSC chief executive John Brogden said.