POWERED BY MOMENTUM MEDIA
Committee backs Govt's super objective
The claimed failure of key stakeholders to develop a consensus around adequacy being a key component of the objective of superannuation has seen a majority of the Senate Economics Committee back the Government's
legislation that the objective of super should be to supplement the Age Pension.
While Australian Labor Party members of the committee issued a dissenting report calling on the Minister for Revenue and Financial Services, Kelly O'Dwyer to withdraw the legislation until it is fixed, the majority report backed the Government's position.
It based its backing on there being "no consensus position for the introduction of subjective descriptors such as 'adequate' or 'comfortable' ".
"There was no consensus position for the introduction of subjective descriptors," the committee report said.
"The committee therefore considers that the objective as drafted will enhance the stability of the superannuation system by creating a clear framework for assessing superannuation policy."
It said that the committee did not consider that either a relative or absolute level of retirement income should be included in the primary or subsidiary objectives.
"Indeed, the subjective nature of terms such as 'adequacy', 'comfort', and 'dignity' have the potential to undermine the successful implementation of an objective for the superannuation system by focusing on retirement incomes as a whole," the report said.
"While there may be merit in striving to set an objective for the entire retirement income system, this is the not the purpose of the bill under consideration by the committee."
Labor members of the committee strongly disagreed with the findings of the reporting, pointing out that "there is overwhelming opposition to the government's current proposed objective".
"Key stakeholders including the Australian Institute of Superannuation Trustees (AIST), Industry Super Australia (ISA), the Financial Services Council (FSC), the Institute of Public Affairs (IPA)and the Association of Superannuation
Funds of Australia (ASFA) criticised the government's lack of consultation during the inquiry and raised concerns with the objective as it is currently proposed," the Labor senators said.
"The minister needs to withdraw this Bill, undertake genuine and detailed consultation with the industry stakeholders and work constructively with Labor to satisfy the Financial System Inquiry (FSI) recommendation to reach broad political agreement for the objective.
"Labor supports legislating an objective for super and we are ready to work constructively with the government to achieve this goal," they said.
Recommended for you
HESTA has delivered a 10.18 per cent return for its MySuper Balanced Growth option in the 2024–25 financial year, marking the third consecutive year of returns above 9 per cent for the $80 billion industry fund’s default investment strategy.
Sally McManus, secretary of the Australian Council of Trade Unions (ACTU), commented on the proposal after former prime ...
Strong performance across domestic equities and infrastructure assets has seen the fund achieve solid returns for the 2024-25 financial year.
AMP has delivered another year of double-digit gains across its flagship superannuation options, with its MySuper members reaping the benefits of a disciplined investment strategy amid lingering geopolitical and market volatility.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
