THE NEWS WRAP: Swan says super changes won’t make a “significant contribution” to the budget

Treasurer Wayne Swan has admitted proposed reforms to the superannuation system will not make a “significant contribution” to budget savings, as criticism of the proposed changes mounts.

 

“The fact is that we have a substantial savings task in this budget and whatever changes are made in super will not be making a significant contribution to that savings task,” Swan said.

 

However, while industry groups acknowledge the challenges posed by a rapidly ageing population, they remain concerned about the lack of detail around the government’s proposed reforms.

 

“At the moment every Australian thinks their super is at risk because there’s no clarity from the government. The government needs to outline what their changes are and end the games,” Financial Services Council chief executive John Brogden said.

 

Glenn Stevens appointed as Reserve Bank governor for another three-year term

 

Reserve Bank governor Glenn Stevens has been appointed for another three-year term as head of Australia’s central bank.

 

The extension, announced on Wednesday by Treasurer Wayne Swan, will see Stevens serve until 2016, when deputy governor Philip Lowe is tipped to take over the role.

 

“I congratulate governor Stevens on his reappointment, which acknowledges his enormous contribution to Australia’s economic resilience through his conduct of monetary policy, as well as his enduring focus on financial stability working together with our other key regulators,” Swan said.

 

Cyprus accepts €10 billion bailout conditions

 

Cyprus has formally accepted a set of conditions that will see the troubled island nation eligible for a €10 billion ($A12.27bn) bailout.

 

Under the deal, the Cypriot government will close the bankrupt Laiki Bank, with all deposits under €100,000 transferred to the Bank of Cyprus, while deposits over €100,000 could be taxed at rates of up to 60%.

 

“The Cypriot authorities have put forward an ambitious, multi-year reform program to address the economic challenges they face,” said International Monetary Fund managing director Christine Lagarde.

 

“The overarching goals are to stabilise the financial system, achieve fiscal sustainability and support the recovery of economic activity to preserve the welfare of the population.”

 

Overnight

 

The Dow Jones Industrial Average is down 0.8% to 14550.4. The Aussie dollar is down slightly to US104.57 cents.

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