AGREEMENT SIGNALS SAVINGS GAP COULD START TO CLOSE Sydney, 8 September, 2003: The Australian Bankers’ Association (ABA) says the landmark agreement between the Government and the Democrats announced yesterday by the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, is positive progress in the superannuation policy area.   David Bell, Chief Executive of the ABA, said: “The significance of this step is that it demonstrates the extent to which negotiating through policy disagreements can be better than no agreement at all.”   Under the agreement, low and middle income earners will receive a significant boost with up to a $1,000 rebate if they increase their voluntary superannuation savings, while superannuation fund members paying the surcharge will get some small relief, with total contributions tax falling to 27.5% in 2006-07.   Mr Bell said: “Given the enormity of the gap between people’s expectations of an adequate retirement income and the actual level of superannuation savings, it is hoped that all political parties will renew their efforts to reach agreement on a retirement incomes policy.”    “This is critical as the Investment and Financial Services Association (IFSA) has estimated a shortfall in national savings of $600 billion.”   Senator Coonan and Australian Democrats Superannuation spokesperson, Senator John Cherry, are to be congratulated for developing this landmark package.      For further information:   Heather Wellard ABA Public Relations Phone: 02 8298 0411 Mobile:  0409 830 439 ENDS