Superannuation overhaul delayed

The Rudd government now admits that its heavily promoted overhaul of Australia’s superannuation system won’t be complete before the next Federal election expected later this year.

Chris Bowen, the minister who has responsibility for superannuation, revealed that in in a television interview.

He said the third report of the Super System Review will reach him on June 30.

That will deal with the structure of this huge industry, which now has $1.2 trillion under its control.

In a preliminary report, published in April, the head of the review, Mr Cooper, recommended that self managed superannuation funds not be allowed to invest in collectible items, like yachts, wine or exotic cars.

Mr Bowen said he would be responding to that final report, after he received it.

“Once that’s done, they’ll be, in total, by far the biggest reforms in superannuation that we’ve seen in 20 years,” he added.

However he also said:”It’s unlikely that we’re going to see legislation before the election.”

“This “underlines the importance of the re-election of the government,” Mr Bowen said.

No date has yet been set for the next Federal election.

The last Saturday on which it could be held, under existing law,  is February 5.

However, governments have traditionally been reluctant to hold elections during holiday periods, so it is still likely to be held this year.

The government is also  facing another obstacle to an early overhaul of Australia’s superannuation system.

It has announced that it intends to raise the present compulsory superannuation levy from 9 to 12 per cent of salary, saying this would add $108,000 to the eventual superannuation payout of a worker now aged 30.

However this declaration depends on acceptance of the resource industry super profits tax, which is still being negotiated with Australian miners.

The Opposition Leader, Tony Abbott, flatly opposes that tax.

The Coalition also opposes the government’s proposed move to a 12 per cent superannuation guarantee levy.