Key steps towards protecting the purpose of superannuation and enhancing the retirement savings of millions of Australians have been achieved by the passage of three pieces of important legislation through the senate today, says the superannuation sector’s umbrella peak-body, ASFA.
The Superannuation Objective bill
The passage of the Superannuation (Objective) Bill 2023 enshrines the objective of super being ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way’. This will ensure future policy decisions are rigorously assessed for alignment with this legislated objective.
ASFA CEO Mary Delahunty praised the passage of the Bill as a significant milestone for Australians’ retirement security. “ASFA is very pleased to see the passing of this law that will codify what Australians have come to love about superannuation over the last 30 years – that it is their nest egg designed to assist them to achieve a dignified retirement.”
The Bill ensures that preservation remains a cornerstone of superannuation. “Preservation is the foundation of trust in superannuation,” Ms Delahunty said. “It ensures that when Australians engage with the system, their contributions are protected for their retirement. It’s this principle that underpins the integrity of super and enables it to deliver the outcomes members and the nation rely on.”
Notably, the Bill introduces a requirement for policymakers to produce a statement of compatibility for any proposed changes to superannuation, reinforcing long-term stability and ensuring reforms are measured against a guiding purpose.
“Australians need to know their superannuation is safe from the winds of political change,” Ms Delahunty said. “This legislation sends a strong signal that the system will remain focused on delivering for members, now and into the future.”
Ms Delahunty also welcomed the Bill’s focus on equity and sustainability, noting: “The objective’s focus on equity ensures that superannuation delivers fair outcomes for all Australians, including women and low-income earners, while sustainability guarantees the system can meet the challenges of an ageing population and evolving workforce.”
Future Made in Australia
ASFA also 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.
“Progress on the Future Made in Australia act is an important step by government to encourage greater capital investment in vital infrastructure of the future. It’s a win-win opportunity for super fund members and for Australia as a whole,” Ms Delahunty said.
A great step towards increasing supply
ASFA says the passage of legislation aimed at addressing the critical under-supply of affordable housing through encouraging greater investment in build-to-rent projects is an important step towards improving housing supply.
ASFA added its support to the objective of encouraging institutional investment into housing, and affordable housing in particular, to address the under supply of housing in Australia which has an impact on affordability.
“Australia is in the midst of a housing crisis fuelled by a critical undersupply of homes. We welcome measures that will contribute to a solution by enabling more houses to be built,” Ms Delahunty said.
“Encouraging capital flow more broadly into housing is an important component of addressing the current undersupply, and there is a positive role for Australia’s superannuation sector in providing that supply,” she 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.
