Super Consumers Australia calls on the Senate to legislate the objective of superannuation

The Superannuation Objective Bill, due before the Senate this week, will legislate a long overdue definition of the objective of superannuation. The proposed objective will direct policy makers to build a super system that ‘preserves savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.’ 

“After more than 30 years of compulsory super, the system is still flying blind. This lack of policy direction causes real consumer harm, with people heading into retirement unsure what to expect from the system,” says Xavier O’Halloran, CEO of Super Consumers Australia. 

“Legislating an objective of super will focus the attention of future policy makers on what matters most to people. The retirement system is currently failing to deliver equitably for all Australians. For example, the independent Retirement Income Review found that the design of the super system tax concessions increases inequality and provides greater benefit to people on the highest incomes. Today, the top 10% of income earners stand to get more of a leg up from the retirement system than the bottom 10% of income earners.” 

“This is not the sign of an equitable system.”

“The objective will force policymakers to grapple with the real issues facing Australians as they head into retirement. To deliver on this objective, Parliament needs to urgently prioritise delivering fair super tax concessions, supporting housing affordability for retired renters, and fixing barriers to First Nations members’ accessing and managing their super.” 

We support the passage of the Bill, but want to see two important amendments to ensure it delivers on its intent:

1. That the economic impacts of future retirement income policy proposals are modelled and published, so they can be tested against the objective of super. 
2. That the Federal Government undertakes a regular review of the super system as a whole, to assess how it is delivering on its objective.