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ASFA supports changes to boost super savings
The Association of Superannuation Funds of Australia (ASFA) has supported changes announced by the Government ahead of the Federal Budget which will enable older Australians boost their superannuation savings which includes the expansion of the ‘downsizer scheme’ to those aged 60.
According to ASFA, the move, which would see the removal of the work test for contributions would increase flexibility for older citizens, would additionally help increase the supply of family homes to the property market.
ASFA also expressed hopes for the budget to address the ‘unacceptable gap’ in retirement savings between women and men by removing the $450 per month threshold where super was not paid by paying superannuation guarantee (SG) on paid parental leave.
“Younger Australians have faced the economic brunt of COVID-19 – there are one million Australians who have effectively cleaned out their superannuation account due to early release,” ASFA’s deputy chief executive officer, Glen McCrea, said.
“It is crucial that the low-income superannuation tax offset (LISTO) rises to reflect tax rate changes and the system goes to 12% so more Australians can have dignity in retirement, particularly younger Australians given the dramatic ageing of the Australian population over the next three decades."
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The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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