POWERED BY MOMENTUM MEDIA
Low-income earners should not opt out of super
The Australian Institute of Superannuation Trustees (AIST) has shut down calls to allow low-income earners to opt out of super, arguing it would have ramifications on part-time workers and women who currently retired with about half the super of men.
The peak body for industry funds said the move would not be in the interests of the long-term fiscal sustainability of the retirement income system, or future generations of taxpayers to fund the Age Pension.
The comments came in response to media reports that reported on a pre-budget submission from an unnamed industry group, which proposed that those earning less than $37,000 a year should not have to contribute to their superannuation, and could effectively receive a 9.5 per cent pay rise if they were to take home their super.
AIST executive manager policy, David Haynes, said the long-term benefits of super should not be underestimated.
"Super is not the solution to plugging budget holes or lifting wages — it's about improving retirement outcomes for all Australians and that includes those on low incomes," he said.
"It doesn't matter if you are a full age pension, a part pensioner or a self-funded retiree, every extra dollar of super makes a difference."
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
