The Association of Superannuation Funds of Australia (ASFA) supports initiatives announced by the Government in advance of this week’s Federal Budget to allow older Australians to contribute more to their superannuation which will assist them to live with dignity in retirement.
The reality is that the vast majority of Australians exhaust their savings in retirement and pass away with no superannuation.
ASFA welcomes the expansion of the ‘downsizer scheme’ to those aged 60 and over as a mechanism to allow older Australians to contribute more to super and to also increase the supply of family homes to the Australian property market.
“The removal of the work test for contributions will also increase flexibility for older Australians seeking to boost their superannuation savings,” said ASFA Deputy CEO Glen McCrea.
ASFA also supports the extension of the First Home Super Saver scheme (FHSS) to enable more voluntary contributions to super and associated deemed earnings to be withdrawn for a first home deposit.
“Importantly, because of its focus on voluntary contributions, the FHSS scheme will not impact on the primary role of super being savings for retirement,” said Mr McCrea.
ASFA believes it is also crucial that the Budget tomorrow addresses the unacceptable gap in retirement savings between women and men by removing the $450 per month threshold where super isn’t paid and by paying Superannuation Guarantee (SG) on paid parental leave.
“Younger Australians have faced the economic brunt of COVID-19 – there are 1 million Australians who have effectively cleaned out their superannuation account due to early release.
“It is crucial that the low-income superannuation tax offset (LISTO) rises to reflect tax rate changes and the system goes to 12 per cent so more Australians can have dignity in retirement, particularly younger Australians given the dramatic ageing of the Australian population over the next three decades,” Mr McCrea concluded.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA 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.