Anthony Albanese’s government proposes major changes to superannuation as it looks at ways to block the early release of money
Australia’s superannuation system is facing an overhaul, with the government looking at ways to block the early release of retirement money.
Albanese government Treasurer Jim Chalmers will use a speech on Monday to propose further protections for superannuation to safeguard retirement savings.
Australians pulled out around $36 billion from their retirement funds during the pandemic.
Dr Chalmers says the early withdrawal of billions was a ‘disastrous policy’ from the former coalition government.
The government will now work towards enshrining the definition of superannuation in law to preserve retirement savings.
‘This made us vulnerable to wrong turns and wrong decisions,’ he will say.
‘It moved us further away from where we need to be – better living standards in retirement for as many Australians as possible.’
The proposed definition is: ‘The objective of super is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way’.
The treasurer says legislating the definition will provide certainty and a common objective for super funds.
The government will release a consultation paper to receive feedback on their proposed reform in the hopes of shoring up the $3.3 trillion super industry.
‘To my mind, defining super’s task as delivering income for retirement isn’t to narrow super’s role in our economy, it’s to elevate it, and broaden it,’ Dr Chalmers will say.
‘A sharper focus on delivering for members requires that funds always invest in a way that secures the right risk-return profile.
‘As an industry, you’re in the game of long-term investing.’
Australia’s superannuation system is facing an overhaul, with Anthony Albanese’s government looking at ways to block the early release of retirement money.
