ASFA calls for bi-partisan support on super policy

The Association of Superannuation Funds of Australia (ASFA) has called for a bi-partisan consensus on superannuation policy settings, reinforcing its support for the super guarantee increase to 12 per cent.

ASFA chief executive Pauline Vamos said the first two steps should be ensuring Australians put in enough money for retirement and making the taxation treatment certain to encourage additional contributions.

“The constant risk that ‘things will change’ is detrimental to achieving a public policy outcome that reduces reliance on the age pension, particularly with the ageing population,” Vamos said.

She claimed increasing the SG as a means to boost the super savings pool was the best way to achieve better retirement outcomes, adding ASFA research and analysis indicated that the adoption of the Henry Report’s recommendations on superannuation would not be as effective in delivering adequate retirement incomes.

“The Henry proposals, if adopted, would reduce retirement savings for many, if not most Australians and would involve a range of implementation and equity problems. They would also be a disincentive for the majority of middle income Australians to save further for their retirement,” Vamos said.

ASFA research found that increasing the SG would boost an average Australian’s retirement savings by $110,000 and aggregate national retirement savings by half a trillion dollars.

According to Vamos, the Shadow Treasurer is “wrong to paint the industry superannuation sector as being controlled by the union movement”, adding all sectors of the industry have been calling for an increase in the superannuation guarantee.