Jane Hume speaking via video at the SMSF Association 2022 National Conference.

The Morrison Government will maintain “certainty” in the financial services industry and has promised no new taxes on superannuation upon potential re-election.

This is according to superannuation minister Jane Hume, speaking at the SMSF Association National Conference in Adelaide on Wednesday.

“There’s one clear promise that I would like to make to you today: The Morrison Government is guaranteeing there will be no increased taxes on superannuation,” Hume said in a pre-recorded video address.

“We know that tax certainty is absolutely crucial so that Australians can plan their financial affairs and retirement with confidence.”

Not only is there the guarantee the Morrison Government won’t add any super taxes, Hume said, there will be no new changes to flexibility measures such as catch-up contributions, downsizer contributions or to the Division 293 tax threshold (the reduction of super tax concessions which has been $250,000 since July 2017).

Back on attack

It would be remiss of the minister not to use any airtime to attack the opposition, and with that in mind she expressed disappointment that Labor had not made similar commitments.

“At the last election the ALP went so far as to committing to removing the widely-used catch-up contributions regime,” Hume said.

“Time and time again Labor says success is something to be taxed not something to be celebrated. A re-elected Morrison Government means stability and certainty for the superannuation system and only the coalition can be trusted to support the self-managed sector.”

While the Morrison Government committed to no new taxes on super, Hume mentioned nothing about the superannuation guarantee, where she has lacked similar enthusiasm in promising it won’t be frozen.

Super credentials

Hume noted the SMSF Association’s national conference was one of the first she spoke at after being appointed minister in 2019.

“The self-managed super sector is a great strength of Australia’s retirement income system and it’s only getting better,” Hume said. “Even with the economic shockwaves caused by the pandemic, self-managed assets have continued to grow.”

The SMSF sector now has 1.1 million members with $822 billion in assets representing roughly a quarter of the super sector according to ATO data as of June 2021.

“We’re also seeing the traditional demographics of self-managed funds changed with funds being started by an increasing number of women and young people,” Hume said.

With the changing landscape of the sector in mind, Hume said, the regulatory systems for self-managed super must be targeted and effective without complexity and the “burden of unnecessary red tape”.

“This will ensure all Australians are supported to make decisions that are right for them and to provide them with the flexibility and choice to manage their own retirement savings. The Morrison Government has always been a great ally of the self-managed super sector.”

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