Equity, sustainability and adequacy are key to super: ASFA

The Association of Superannuation Funds of Australia (ASFA) acknowledges the Federal Opposition’s announcement today of its position on the taxation of superannuation and the May 2016 superannuation proposals.  ASFA will take time to assess and fully understand the impacts of the proposed measures on fund members and the system.

“It is vital that any package is considered in terms of the long-term sustainability of the system, adequacy of retirement incomes for all Australians and the equity of tax concessions provided,” said Jim Minto, interim CEO, ASFA.

“Equally, we must not lose sight of the fact that members must be easily able to understand the nature of the changes and the changes must be administratively viable, so as not to impose greater costs on fund members.

ASFA has long called for measures which address adequacy, with a particular focus on those who need to be able to “catch up”.

“There are many people who fall behind in accumulating the super balances necessary to provide a comfortable income in retirement, including women who spend time out of the workforce raising children or those caring for elderly parents as well as many other reasons for broken work patterns.

“It is important that we give everyone the chance to build an adequate nest egg with which to retire. The proposed reduction in concessional contribution caps by the Government and the Opposition would mean that some people would not be given a reasonable chance of doing that.

“However, it is good to see that both the Government and Opposition see providing support for low income earners to make contributions to superannuation as a key part of the system.”

ASFA advocates policy settings which will mean that an increasing number of retirees will reach the ASFA comfortable standard, with a goal of 50 per cent of retirees reaching or exceeding that level by 2050.

“It’s critical that we get these decisions right and think about the long term future for Australia’s retirees over the decades to come rather than just focusing on the short term,” concluded Mr Minto.

Source: ASFA