Comments on savings made today by the Minister of Finance were an encouraging sign that the Government intended to do more to encourage long-term savings, AMP's head of superannuation Linda McCulloch says.
"AMP concurs wholeheartedly with Dr Cullen that employment based retirement savings schemes are one of the most effective and efficient ways of helping people save for their retirement," she says.
"It is encouraging to hear that policy development work is going on in this area. We also welcome his comments that the Government needs to show leadership by restoring employment based retirement schemes in the state sector."
McCulloch says she was pleased that Dr Cullen had identified the anomaly in the current tax regime that penalised low and middle income savers as the first priority to resolve.
"Anyone who earns less than $38,000 a year currently pays more tax on money saved compared to money spent. You have to ask why anyone would bother saving with this kind of disincentive. It is undoubtedly the first step.
"Regarding other moves to encourage savings, AMP has always said that some sort of Government action is required to kick-start private savings. The work that Dr Cullen outlined today will make a huge difference if it is translated into action," she said.
This is a press release from AMP
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