Super boost may be scrapped

The federal government may abandon proposals to bring in higher superannuation contributions as it looks to return the national budget to surplus, it has been revealed.

In an interview with ABC Radio, assistant treasurer Nick Sherry said: "We won’t compromise the budget moving back into surplus in three years."

He added that this could involve "an adjustment" to other elements of the government’s tax package, which includes the super profits tax, the AAP reported.

Other elements within the tax plans include cutting the company tax rate from 30 per cent to 28 per cent while also lifting compulsory superannuation contributions from nine to 12 per cent.

A potential back-down from such proposals could more prompt more Aussies to compare term deposits in search of better long-term savings options.

Government finance plans are shifting as the Gillard administration looks to reach a deal with mining companies over the resource super profits tax. Any compromise in this area would affect the government’s budget restructuring plans.

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