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Give us the big super picture first



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MEDIA RELEASE " l l i i l i L t n u i i April 30 1992 pr 92\229 GIVE US THE BIG SUPER PICTURE FIRST

The Australian Democrats say they will finalise their position on the proposed Superannuation Guarantee Levy after the Senate Select Committee hearings into the legislation.

Democrat Treasury and Finance spokesperson and member of the Committee, Senator Cheryl Kernot said although she had reservations about the SQL, she would attend the hearings with an open mind.

"I am hoping the witnesses will allay some of my fears about the legislation. The Democrats' Party Room should then be able to make a decision after the hearings end on May 11

The levy, due to come into effect on July 1, will guarantee that employers pay a minimum of 9% of an employee's salary in superannuation contributions after the year 2000. Employers who do not comply will be charged a levy by the Government.

The legislation requires Democrat support for it to pass in the Senate.

Senator Kernot said the Democrats wanted to see the big picture - concerning tax ... treatments, the future of age pensions, prudential supervision and the rules governing the industry - before handing over to the Industry a huge pool of capital....... , starting at $100 billion and growing to $600 billion. ~z:r r i r j

"We have just emerged from th e e x c is s e a o f The 80's and theiexcessesofthe^ z z - - ;z p deregulation of financial institutions and i am simply not prepared =to^and^erThisrTisi huge pool of capital without knowingwhat's goingTohappenm

"Superannuation legislation In the past has l5een piecemeal and unco-ordinated. I ... am not prepared to add to that."

"At this stage the Government has not provided any evidence that the proposals will actually increase the level of national savings, or given any guarantee that money from the levy will be used to finance people's retirement."

FOR FURTHER INFORMATION CONTACT SENATOR KERNOT ON 06 277 3745 OR 06 285 2136 (AH) _ _ _ _ _

COMMONWEALTH

PARLIAMENTARY LIBRARY MICAH