The five leading bodies for Australia’s $1.3 trillion super industry, today called for bipartisan support for the recent proposed changes to superannuation, including increasing the Super Guarantee from 9 to 12%, to enable Australian workers to plan for their retirement with certainty and security.
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 opposition to low income tax measures, top up arrangements for the over 50’s as well as the raising of the SG to 12% by 2019, threatened to leave millions of Australian with less than adequate retirement savings.
“These landmark reforms will 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.
The bodies noted the multi-facetted role that super plays in strengthening the Australian economy. This included the long-term benefit of meeting Australia’s challenge of an ageing society, deepening the nation’s savings pool and providing a source of funds for much-needed long-term infrastructure investment. Super also played a crucial role by 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.”
“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,” the bodies said. “Our universal system is internationally recognised as being world’s best practice across OECD nations.”
The super bodies also noted the reforms proposed by the Government which will do much to lift the retirement savings of low-income workers, particularly women, as well as older workers wanting to top up their super.
“The extension of our universal retirement income system to 12 per cent and the other reforms announced, will benefit Australians today and in the future, by strengthening the economy, enhancing retirement outcomes and reducing the burden on government pension payments.”
Association of Superannuation Funds of Australian (ASFA)
Pauline Vamos, Chief Executive Officer, 0433 169 342
Sarah O’Grady, Communications Co-ordinator, 0410 439 966
Australian Institute of Superannuation Trustees (AIST)
Fiona Reynolds, Chief Executive Officer, 0408 336 116
Janet De Silva, Media Manager, 0448 000 499
Investment and Financial Services Association (IFSA)
Simon Disney, Senior Manager Media & Communications, 0408 161 466
Industry Super Network (ISN)
David Whiteley, Chief Executive, 0417 131 551
Self-Managed Superannuation Fund Professionals’ Association of Australia (SPAA)
Andrea Slattery, Chief Executive Officer, 08 8212 5999
or 0417 898 317