NAIDOC Week — new research highlights the importance of ASFA/FNF initiatives to address First Nations superannuation inequity

Media Release | 12 July 2024

As Australians reflect on the culture, history and achievements of Aboriginal and Torres Strait Islander peoples this NAIDOC Week, the Association of Superannuation Funds of Australia (ASFA) and First Nations Foundation (FNF) have highlighted the importance of their initiatives aimed at improving the retirement outcomes of First Nations people. 

Research unveiled by ASFA today reveals that superannuation coverage and median account balances remain substantially lower for Aboriginal and Torres Strait Islander people than the general population. 

“This NAIDOC Week, we’re calling on all stakeholders in the superannuation industry to recommit to the task of building a future where all First Nations peoples have equal opportunities for financial security and a dignified retirement,” FNF Chief Executive Officer Phil Usher said.  

“ASFA’s research shows some modest progress. The median super account balances for First Nations men and women have grown at a rate surpassing inflation since 2014, superannuation coverage and participation have increased, and the gender gap in coverage has been effectively eliminated.  

“While this is a small step in the right direction, economic reconciliation requires the removal of systemic barriers to superannuation equity and inclusion. We will continue to work with the industry to achieve this,” Mr Usher continued.  

Mary Delahunty, ASFA’s Chief Executive, said that action is being taken on issues within the superannuation industry’s control and in advocating for policy change.  

“One of the key barriers we have identified is a shortage of cultural competency in the industry. To address this, ASFA and the FNF have partnered to empower funds with cultural knowledge essential for driving better outcomes for First Nations superannuation customers.  

“ASFA also supported FNF’s First Nations Super Summit in February 2024, where focus areas were identified for initiatives to enhance superannuation outcomes for First Nations communities,” Ms Delahunty said. 

Ms Delahunty added that ASFA is now working to implement the initiatives identified at the Summit, which include promoting the standardisation and simplification of forms and enabling superannuation funds to recognise their customers as Aboriginal and Torres Strait Islander peoples.  

“This will help build better administrative processes and outcomes for First Nations customers, driving improved engagement and building confidence in super,” Ms Delahunty explained.  

“ASFA is also working with its members to adopt measures like alternative forms of customer identification and verification that account for the specific needs of First Nations customers. We also are supporting several major superannuation funds in developing and facilitating the work of financial counsellors in regional First Nations communities.”  

General economic barriers to First Nations superannuation equity and inclusion remain, including lower rates of paid employment for First Nations people, lower average length of participation in the labour force, and lower average life expectancy (and therefore less incentive for voluntary super contributions).  

“ASFA continues to advocate for policy shifts to address the underlying causes of superannuation inequity. These include introducing superannuation payments on Paid Parental Leave and increasing the upper taxable-income threshold for the Low Income Super Tax Offset (LISTO) from $37,000 to $45,000. Both measures will help increase account balances for Aboriginal and Torres Strait Islander superannuation customers,” Ms Delahunty concluded.  

FNF, supported by ASFA, will continue to oversee the Indigenous Superannuation Working Group, which collaborates with the industry to achieve economic reconciliation through superannuation. 

 

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.

 

About First Nations Foundation 

First Nations Foundation (FNF) is an Indigenous-led organisation that remains committed to enhancing the economic prosperity of Indigenous Australians. As the sole Indigenous financial education provider in the country, we rely on evidence-based research to shape our program framework and lobby the government for systemic change. Led by an Indigenous majority board since 2006, FNF’s mission is to achieve financial literacy and prosperity for Australia’s First Nations people. FNF’s research and data help to lead a national conversation on achieving economic prosperity for First Nations people. 

For more information on the First Nations Foundation, please visit www.firstnationsfoundation.org.au 

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