Concern over superannuation and self-employed
The Government should develop a mechanism under which a range of stakeholders could examine community superannuation issues, including consumer protection issues in SMSFs, according to the Association of Superannuation Funds of Australia (ASFA).
In a pre-budget submission released this week, ASFA has also expressed deep concern at the lack of access to superannuation for those who are self-employed.
"ASFA is concerned that the proportion of self-employed that have no superannuation is increasing," the submission said.
"According to data from the Australian Bureau of Statistics, around 30.5 per cent of males and 25.8 per cent of women report having no superannuation at all."
The submission said the self-employed were about twice as likely to have no superannuation compared to wage and salary earners.
"The self-employed also are less likely to have higher or middle range balances compared to wage and salary earners," it said.
"A comparison of self-employed against employees reveals that whereas 50 per cent of employees have less than $20,000, 50 per cent of the self-employed have less than $11,000.
The submission said ASFA considered there was an urgent need to address structural issues that create incentives for self-employed persons not to contribute to superannuation.
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