Response on Henry review is not enough: AIG
The Australian Industry Group commented that the Federal Government only addressed a few issues regarding the Henry review which was released on Sunday.
AI Group chief executive Heather Ridout said that the government still lacked in addressing the review, despite that it answered some of the pressing needs like taxing the mining sector and cutting tax on small businesses.
"They've ruled out 25 (recommendations), they touched on four or five this afternoon," she told media yesterday.
Ms. Ridout said that the government still has a long way to go, adding that the review is about long-term reforms.
Ms. Ridout expects the government to tackle tax on alcohol, gambling, petrol, and congestion.
"I think they were ignored because it's very hard to do, and hopefully it won't be ignored permanently,' she said.
She urged the coalition to back up the changes made by the government to avoid band-aid solutions.
Meanwhile, several welfare groups are skeptical over the changes made to the compulsory superannuation contribution from employees.
The payments made by the employees will be upraised from nine to 12 per cent from July 2013 to July 2019.
Employees may receive compulsory payment up to 74 years.
Those low income earners with $37, 000 a year, will get a federal $500 annual aid on superannuation savings.
Australians aged over 50 with balances below $500,000 may top their contribution by $50,000 at concessional rates.
The Australian Council of Social Servcices (ACOSS) said that the government's proposal did not push further as of yet, as it wants a 15 per cent increase on compulsory super contributions.
The group's CEO Clare Martin also raised her skepticisms over the increase of contributions.
"It is a step backwards because it restores tax breaks for high-income earners," she said.
ACOSS was also disappointed for not addressing housing affordability.