Abbott won’t rescind 12% superannuation

Tony Abbott will not rescind 12 per cent compulsory superannuation if it is passed by parliament.

“We will not try to rescind it,” says the opposition leader who leads opinion polls as the preferred prime minister. “We’re not instinctive supporters of mandatory superannuation contributions.”

Abbott spoke at a Financial Services Council breakfast in Sydney. He received a rapturous welcome by the audience.

Craig Meller, managing director of AMP Financial Services, introduced Abbott at the the breakfast. Meller says his mother is happy he was introducing an English-born person. Meller introduced Welsh-born Prime Minister Julia Gillard at a previous FSC breakfast.

Abbott returned the audience’s favour by greeting and talking to many of its number as they ate. “You’re very important to the country,” he told his audience. “You can trust us with the future of the country.”

Volatility on global financial markets was a “lesson” to governments, says Abbott.

“It’s a terrible judgement on governments and people who live beyond their means,” he says. “Debt and deficits cannot go on forever.”

He criticised the government for having a net debt of $107 billion after inheriting a $22 billion net surplus from the Howard government.

“Our budgetary management is worse that the U.S. and U.K.,” says Abbott. “It is not a sensible, prudent government.”

He says the government should enact “spending cuts,” introduce a mini budget and get it passed by parliament.

Abbott also criticised the carbon tax saying it was “ripping off” Australians.

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Licensees barred from new class of adviser under revived DBFO reforms

Licensees barred from new class of adviser under revived DBFO reforms

Only APRA-regulated super funds and insurers will be allowed to employ the new class of adviser in a policy backflip by the government. But other reforms announced by Minister for Financial Services Daniel Mulino on Wednesday will revamp the Compensation Scheme of Last Resort, crack down on lead generation services and improve access to safe and reliable financial advice.

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