POWERED BY MOMENTUM MEDIA
Fix super inefficiencies
The Federal Government should address inefficiencies in the Australian superannuation system before moving to lift the level of the superannuation guarantee, according to a joint submission by the Australian Institute of Superannuation Trustees and the Industry Super Network.
The submission, to the Henry Review of taxation, argues that while there is a case for increasing the super guarantee from the existing 9 per cent to 12 per cent, it was recognised that the global financial crisis had put the brakes on such an increase.
The two organisations suggested that more immediate gains could be achieved for retirement incomes by addressing system inefficiencies such as sales commissions, high fees and underperformance.
It said this could be achieved at the same time as increasing equity through more progressive taxation arrangements.
However, the joint submission also calls on the Government to deliver a more explicit definition of adequate retirement income and has reopened the debate on removing the 15 per cent contributions tax, which it said confers no benefit and can even be detrimental for those on low incomes and low marginal tax rates.
The chief executive of the AIST, Fiona Reynolds, said low income earners, the self-employed and many women - who took longer career breaks than men - were unfairly treated under the current system, which is heavily skewed in favour of high income earners.
AUTHOR
Mike Taylor
Recommended for you
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
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(%)
