The Association of Superannuation Funds of Australia (ASFA) described today’s discussion paper from Senator Andrew Bragg to nationalise superannuation and default workers’ retirement savings into a government-run investment fund, as facile and at odds with concerns regarding concentration and common ownership of ASX companies.
“This illiberal idea is inconsistent with the recently announced House of Representatives inquiry into concentration and common ownership in the Australian share market and would exacerbate the very issues which are the apparent cause of concern for this Inquiry,” said ASFA CEO, Dr Martin Fahy.
“Moreover, the industry is still in the process of implementing the latest round of major reforms which were legislated only last month, so creating further confusion for Australians right now is perplexing, particularly given the strong performance of superannuation funds over the past year.”
It’s worth noting that the head of the OECD does not support nationalising superannuation.
“Putting the precious retirement savings of Australian workers into a nationalised entity raises the spectre that down the road we could of see the fund raided for pet projects and political interference in its investment decisions.
“Defaulting people into a government-controlled superannuation fund will lead to the moral hazard of superannuants expecting the Government to underwrite their retirement outcomes and pick up the bill for any underperformance or losses in the long-term,” concluded Dr Fahy.
For further information, please contact:
ASFA Media Team, 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.
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