In circumstances where the Federal Treasurer, Josh Frydenberg had announced many of the Government’s key financial services measures ahead of the Budget, the industry tonight welcomed its overall steady approach to policy, particularly with respect to superannuation.
Both of the major superannuation industry organisations – the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST) – welcomed the changes announced by Frydenberg and confirmed in the budget papers.
However the two organisations were more pleased by what the Government did not do, than what it actually announced.
ASFA chief executive, Dr Martin Fahy described the Budget as bringing stability to superannuation and enhancing confidence in the retirement funding system.
He said the Budget introduced a number of positive superannuation measures. These include:
Fahy said that changes made to superannuation tax settings in the Government’s 2016 Budget in particular, had made the superannuation system sustainable and equitable.
“The Government has today taken the opportunity to reaffirm their commitment to retirees by leaving the system alone,” he said.
AIST chief executive, Eva Scheerlinck said the changes to the rules for voluntary super contributions in the 2019 Federal Budget were good news for older members who could afford to make additional contributions to their superannuation savings, but would have minimal impact on the retirement outcomes of most Australians.
“The vast majority of members of profit-to-member superannuation funds will not benefit from these changes,” she said. “Most ordinary working Australians cannot afford to make extra contributions and can only dream of having the money to pour an extra $300,000 into their super fund in a single year.”
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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