Governments should not seek to favour one sector of the superannuation industry over another, according to the Federal Opposition Financial Services spokesman, Jim Chalmers.
Addressing the SMSF Association annual conference in Adelaide, Chalmers said “super should not be a game of favourites for any government.”
“Superannuation is not a zero-sum game,” he said. “Ideally, strengthening one part of the system need not necessarily weaken the rest. If we want a truly world-class super system, then we need every component to be performing well — from small funds like yours, to industry funds, public sector funds and retail funds. Super shouldn’t be a game of favourites for any government.”
Chalmera said a balanced view of super acknowledged the growth-potential of savings and also put people at the centre of the system, ensuring that it was structured to provide the best possible returns to members.
He said this was a particular challenge given the volatility of global markets affecting all parts of the system.
“What does it mean to put people at the centre of super?” he asked. “We want to make sure that there are safeguards and filters in place to ensure that whatever super fund people end up with is the best for them. As the Association has said, it’s crucial that people have enough information, and the right information, about their super investments to make informed choices.”
“Of course, information itself is not always enough to make a good investment decision. That is why we are pleased to work with the Government to raise the standards of professional advisers,” Chalmers said.
“We want to ensure that people are saving enough to give them a decent standard of living across longer lifespans. A good level of savings gives people the best chance of a decent standard of living in retirement. This is why the superannuation guarantee needs to go to 12 per cent over time, not frozen as it has been three times, and with a permanent freeze flagged in the press.”
Chalmers said workers in part-time and casual work, especially women, needed to get a better deal from the super system and thaf Labor was working on affordable ways to achieve that at a time when the Low Income Super Contribution is being abolished.
He reiterated Labor’s super policy, stating it proposed that people with fund earnings above $75,000 be taxed at the same rate as earnings in the accumulation phase — a measure he said would only affect approximately 60,000 account holders with super balances in excess of $1.5 million.
“We’ll also lower the threshold on the High Income Superannuation Charge from $300,000 per annum to $250,000, Chalmers said.
