Plan to pump budget surplus into super
Thursday, 21 February 2008
Mike Preston, economics editor
The Federal Government is reportedly investigating a plan to pump funds from future bumper budget surpluses into superannuation.
Treasury is currently working on proposals that would see revenues drawn from surging company profits directed to the superannuation of lower and middle income earners, according to The Australian Financial Review.
The Government is reportedly looking for productive ways to use growing tax revenue other than potentially inflationary personal tax cuts.
Kevin Rudd’s team is also implementing a plan to reform federal state financial relations by slashing the number of tied grants. There are currently 89 separate grants for a range of purposes, but under the new regime there will be just five broad funding agreements covering key areas such as healthcare and housing.
And Trade Minister Simon Crean is also reportedly close to announcing a broad-based review into the Government’s trade policy.
The review, to be headed by Leighton Holdings and Australia Post chairman John Mortimer, will consider whether reforms are necessary to improve the Export Market Development Grants scheme.