Voluntary super contributions have 'all but dried up'
Voluntary contributions to super have all but dried up in the face of the Federal Government’s May Budget and announcements from the interim Henry Report, according to the Association of Superannuation Funds of Australia (ASFA).
This has emerged from a series of ASFA think tanks held around Australia with chief executives and other thought leaders from the superannuation industry, according to ASFA director of policy and industry practice Melinda Howes.
“There was strong feedback at these meetings that the May Budget changes and announcements from the interim Henry Report have unsettled fund members over the sustainability of their super,” Howes said.
“While the Government has made some statements around having no current intention of implementing the interim Henry Report recommendation on increasing the preservation age to 67, there has not been a definitive statement.”
The meetings also revealed “wide anecdotal evidence from our members that other investment vehicles are being preferred ahead of super,” she said.
As a result, ASFA was calling on the Federal Government to state its long-term vision for superannuation and support for the three pillars policy to counter a severe drop in confidence in the Australian system.
“The confidence of the Australian people in the superannuation system is at an all-time low due to the global financial crisis and the fact that super fund members feel that they are standing on shifting sands.
“It is important for fund members to know that their super is safe, but also that their tax incentives to contribute are safe,” she said.
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
