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Super bodies support reforms
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Australia’s five leading superannuation bodies have called for bipartisan support of the Government’s recent proposed changes to Australia’s superannuation system in a joint statement.
The Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST), the Investment and Financial Services Association (IFSA), the Industry Super Network (ISN) and the Self-Managed Superannuation Fund Professionals’ Association of Australia (SPAA) warned that opposing the changes could leave millions of Australians with inadequate retirement savings in the future.
The changes — including as increase in the super guarantee from 9 per cent to 12 per cent by 2019, low income tax measures and top-up arrangements for the over fifties — would see “super accounts boosted for average workers by $110,000 and aggregate national retirement savings up by half a trillion dollars,” the super bodies said.
Super strengthens the Australian economy by helping to meet the challenge of an ageing society, deepening the nation’s savings pool and providing a source of funds for long-term infrastructure investment, the bodies noted. It also played a crucial role in helping to cushion the economy from the worst effects of the global financial crisis.
“The Government’s schedule for the increase is both well telegraphed and measured, enabling employers, employees and unions to come to suitable arrangements,” the bodies said.
“History has shown that businesses were not adversely affected when compulsory super was introduced back in 1992. Almost 10 years later, company profits had risen and labour costs had dropped — while at the same time Australia’s retirement savings pool had grown substantially. Our universal system is internationally recognised as being world’s best practice across OECD nations.”
The reforms would also lift the retirement savings of low-income workers and reduce the burden on government pension payments, the bodies said.
AUTHOR
Mike Taylor
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