Industry Super Australia today congratulated the Albanese Government on its election and announcement of key treasury portfolio ministers who will be responsible for delivering on the promise to millions of Australians to secure a dignified life in retirement.
The government’s unwavering commitment to lifting the super rate to 12% as legislated and support for policy foundations of preservation and compulsion are the key building blocks to supercharge savings, underpin domestic investment and alleviate pressure on the age pension.
To this end the government’s commitment to enshrine the objective of super in legislation will protect the retirement of future generations.
The election outcome also demonstrated strong community support of the principle that super is to be saved for retirement, and not raided to solve other problems like housing affordability.
Industry SuperFunds look forward to working with the Assistant Treasurer and Minister for Financial Services Stephen Jones on system improvements that will deliver better outcomes for women and for those on lower incomes or in unstable employment.
Industry Funds are also poised to partner with government on projects that will drive growth, create jobs while delivering good risk-adjusted returns to members.
Unpaid super is a $5 billion a year problem, ISA urges the new government makes addressing the scourge a priority and transitions all employers to pay super at the same time as wages.
There should also be methodical progress to narrow the gender super gap, an important step is paying super on Commonwealth Parental Leave Pay.
Ongoing work is also needed to strengthen consumer protections through more comprehensive performance testing of super products and halting stapling members to duds.
ISA congratulates and thanks former superannuation minister Jane Hume for her contribution, including the inaugural performance tests, curtailing multiple accounts, and abolishing the $450 threshold which means that more than 200,000 lower income workers, many of them women, are now getting vital retirement contributions.
Comments attributable to Industry Super Australia Chief Executive Bernie Dean:
“Industry SuperFunds represent over half of the nation’s workforce and on their behalf we welcome the governement’s commitment to their members future financial security.
“With greater policy cerainity funds are able to deliver more to members’ nest egg – giving Australian workers more control over when they finish work and more choices about how they live in retirement.”
“Super has been a boon for millions already but it’s not perfect and there are long-standing issues that the government needs to address to make sure that more women and low-income earners get a fairer go.”
“This government has an opportunity to embrace the power of super, putting member savings to work building infrastructure and supporting other projects that generate economic growth and good member returns at the same time.”
