Industry commentators did not find a lot to be excited about in this year's federal budget, with many of the measures building on earlier announcements. However, many agreed that despite the lack of surprises, it was a solid effort.
There was a focus on savings and health, and a greater sense of responsibility for Australians, with the government aiming to provide long-term growth and benefits for the nation.
"This is a budget that moves from supporting the economy through the slowdown to bringing us back to surplus now that we are recovering strongly. A budget that produces an economic and fiscal position the envy of the developed world, and a stronger, more secure future for all Australians," Treasurer Wayne Swan said in his budget speech.
The government's focus on building savings, both within superannuation - through the earlier announcement of an increase in the superannuation guarantee from 9 per cent to 12 per cent - and the budget announcement of a 50 per cent discount on the first $1000 of interest earned on deposits, bonds, debentures and annuity products, was roundly welcomed by the industry.
"Mercer is pleased to see a federal budget that further encourages savings, both inside and outside of superannuation. The tax discount on certain interest-bearing products gives greater focus to savings. This initiative can be built upon in future years and could help create a savings culture, in particular amongst younger people," Mercer managing director David Anderson said.
The Industry Super Network (ISN) said the reforms were complementary to the earlier measures the government announced for superannuation.
"Importantly, superannuation will still retain a clear taxation preference to compensate for its mandatory nature and preservation requirements," ISN executive manager David Whiteley said.
"There is always a need for individuals to have short-term savings and this new measure will help renew a savings culture in the community, which should hopefully carry over to superannuation."
According to the Association of Superannuation Funds of Australia (ASFA), the budget reinforced superannuation as the primary savings vehicle for Australians.
"The announcement that bank accounts and certain other savings will receive concessional tax treatment - but at a less attractive level than superannuation accounts - will encourage savings and help minimise debt," ASFA chief executive Pauline Vamos said.
However, despite the budget announcement to encourage saving and the $5.6 billion to be spent on health, there is still concern from some in the industry about how the government will cope with Australia's ageing population.
The Institute of Actuaries said there was a lack of budget funding to tackle the issue of longevity.
"Australia's ageing population is like a tsunami beyond the horizon - while we can't see it yet, we know it's coming. If we do not act soon, the resulting longevity risk could be devastating," Institute of Actuaries president Bozenna Hinton said.
Challenger Life chief executive Richard Howes welcomed the inclusion of annuities in the range of products covered by the budget's savings tax discount, but said more needed to be done.
"Some simple changes to outdated legislation is all that's needed to permit the provision of simple and cost-effective deferred lifetime annuities. Modernising the law would simply create a level playing field for a product that is sold extensively overseas," Howes said.
However, Vamos said the budget announcements would still make the provision of annuities for retirees more tax effective and more attractive.
In a final boost to super, Swan announced the Superannuation Complaints Tribunal would get a $5.9 million boost in funding over four years.
So, while the budget may have been seen by some as boring, it did reinforce the prominent position of superannuation and the super industry in the Australian economy.
