POWERED BY MOMENTUM MEDIA
Pearce argues for soft compulsion in super
Soft compulsion needs to be encouraged in order to deal with issues of adequacy in super, according to the shadow minister for financial services, Chris Pearce.
Speaking at the Association of Superannuation Funds of Australia (ASFA) conference, Pearce called on the Government to implement a soft compulsion superannuation system, saying that such a move would be a natural extension of current policy.
Many Australians had not been working with the super guarantee for their entire working lives and a system such as soft compulsion would be needed to boost their retirement savings, he said.
Such a system would also overcome the apathy of most working Australians towards their super without increasing the financial burden on businesses, he said.
A soft compulsion system of 3 per cent would represent a better outcome for those Australians who were within the “soft system” but not contributing to their own superannuation levels, and would add to national retirement savings without diluting the choice of the consumer, he said.
The Tasmanian public service and New Zealand had proven that a soft compulsion system could work, Pearce said.
Inertia in superannuation would remain until the Government implemented such a system, he added.
Pearce also warned that short-term revenue decisions, such as reducing the contribution amounts, were dangerous in the long term.
Pauline Vamos, chief executive of ASFA, said a soft compulsion system for super had been a policy of ASFA for some time.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
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(%)
