Industry coalition urges political action on super
A throng of leading industry associations and representative groups have combined to put pressure on the nation’s political leaders to increase superannuation savings, arguing existing policies will fail to provide retirees with adequate retirement income.
The 14 organisations representing employers and trade unions, major business, finance, and industry groups, and the accounting and actuarial professions today launched ‘Call for Super Action’, an initiative calling on all sides of politics to address the fact that Australia is under prepared to deal with a an increasingly ageing population.
“It is well known that our population is ageing, and that the number of aged Australians will dramatically increase in the future. But the current policies are inadequate and further strategies are needed to address this fundamental issue — and time is running out,” Call for Super Action independent chairman David Knox says.
Knox, who also works forPricewaterhouseCoopers, adds signatories to the document believe “it is critical that strategies and incentives to provide for the financially secure retirement of average Australians are established now, and not left for future generations”.
The scheme calls for the broad acknowledgement and acceptance of the Senate Select Committee's finding that an adequate level of retirement income should be around 65 per cent of pre-retirement income.
Specific policy proposals include the removal of the 15 per cent super contributions tax, extending the super co-contribution incentive to those earning up to $60,000 and improving the feasibility of integrating work and retirement during a phased retirement period.
“Some of these proposals build on recent welcome announcements by both the Government and Opposition. Indeed, this is an area of ongoing policy development and this Call for Super Action was modified during its eight-month gestation period in light of the recent announcements,” Knox says.
The coalition comprises the Australian Bankers Association, the Australian Council of Trade Unions, Australian Industry Group, the Australian Institute of Superannuation Trustees, theAssociation of Superannuation Funds of Australia, Business Coalition for Tax Reform, the Committee for Economic Development in Australia, Certified Practicing Accountants of Australia, theFinancial Planning Association of Australia, theInstitute of Actuaries of Australia, theInstitute of Chartered Accountants in Australia, the Industry Funds Forum, theInvestment and Financial Services Associationand theSecurities Institute of Australia.
Recommended for you
Insignia Financial has reached a major milestone in completing the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
Proper recordkeeping has been described as the “mortar between the bricks” of the advice process and critical to an FSCP decision as an adviser is suspended for failures in this area.
As investors increasingly seek to embed ESG considerations in their portfolios, a specialist adviser has offered tips for financial planners who may feel overwhelmed in tackling these complex topics with clients.
