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Budget advances dignity and security in retirement for all Australians, says super peak body

Media Release | 14 May 2024

The Association of Superannuation Funds of Australia (ASFA) welcomes Federal Budget measures to further strengthen and improve equality in Australia’s superannuation system, and bolster Australia’s investment environment.

ASFA, the voice of super, said the long-awaited introduction of super on paid parental leave will help to reduce the gender retirement savings gap, while changes to ensure superannuation is paid every pay day will guarantee Australians are paid their superannuation entitlements.

“ASFA is pleased to see frameworks that will be developed to investment in the crucial energy transition. Projects that provide an appropriate return for super funds and advance our nation’s prosperity are a double dividend for Australians,” said ASFA CEO Mary Delahunty.

Measures announced tonight provide additional funding to support the implementation of payday super, recover unpaid super and protect members against the risk of fraud.

  • Increases to the Productivity, Education and Training Fund to support workplaces to implement policy changes such as the introduction of payday superannuation.
  • Changes to the Fair Entitlements Guarantee Recovery Program to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.
  • Strengthening the ATO’s ability to detect, prevent and mitigate fraud against the tax and superannuation systems.

ASFA analysis shows that paying superannuation on paid parental leave combined with the legislated increases in the superannuation guarantee and duration of paid parental leave to 26 weeks will lead to an increase in superannuation balances at retirement of around $5,100. For a woman who received paid parental leave at age 28 for a first child and at age 30 for a second child, the increase in superannuation balance would be at least$10,700 in today’s dollars.

“Future generations of Australian women stand to add thousands to their super balances thanks to this change in policy. This is a crucial and long-overdue step in improving their financial security in retirement”.

“ASFA has long called for people to be paid their super on the same day they get paid their wages.  We welcome funding to support this policy’s timely implementation and ook forward to continuing to play a key role in realising these changes so Australians get the super they are entitled to,” Ms Delahunty added.

ASFA acknowledges the opportunity presented by the government’s Future Made in Australia plan, and its goal of attracting investment capital to key industries including renewable energy and welcomes conversations with investors on the development of the national interest framework.

“Patient superannuation capital investment in vital infrastructure of the future is a win-win opportunity for super fund members and for Australia as a whole,” said Ms Delahunty.

ASFA also welcome additional funding for increased housing supply including support for more community housing providers to access finance through the Affordable Housing Bond Aggregator by increasing the cap on the Government’s guarantee of Housing Australia’s liabilities by $2.5 billion to $10.0 billion.

“ASFA supports the government’s focus on increasing critical housing supply, as the key policy measure to address Australia’s housing shortage,” Ms Delahunty concluded.

For further information, please contact ASFA Media team: 0451 949 300

About ASFA

ASFA, the voice of super, is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.

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