Superannuation

The Financial Services Council (FSC) welcomes the Federal Government prioritising public consultation on a proposed definition of the objective for the ...

The industry is responsible for investing almost $3 trillion on behalf of more than 15.6 million Australians. “The Government’s proposed wording heads in the right direction. About the Financial Services Council The Financial Services Council (FSC) has over 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies.

As Labor outlines its proposed definition for the purpose of the super system, how will the sector, its lobbyists and other groups try to use these words to ...

So how will the superannuation sector, its lobbyists and other groups hoping to tap into the superannuation piggy bank try to use these words to their advantage? Employer groups may be more cautious, as their members will foot the bill for superannuation increases. [Opinion [15pc super not in the ‘near term’ plan: Chalmers](https://www.afr.com/policy/tax-and-super/15pc-super-not-in-the-near-term-plan-chalmers-20230220-p5cly9)The Treasurer said the government’s proposed vision for superannuation to deliver “dignified” retirement income was aimed at closing the gender balance gap. [Chalmers to slam the door shut on early access to super](https://www.afr.com/politics/chalmers-to-slam-the-door-shut-on-early-access-to-super-20230219-p5clon)Labor’s legislated objective for superannuation will spark renewed calls to scale back tax breaks amid calls to limit superannuation balances to $5 million. Chalmers’ vision may have electoral appeal but his thesis is shaky](https://www.afr.com/policy/tax-and-super/chalmers-vision-may-have-electoral-appeal-but-his-thesis-is-shaky-20230220-p5clxr)The Treasurer can argue making superannuation more “equitable and sustainable” is in the national interest. Others, such as AustralianSuper, say that returns must come first. ‘One fact stands out’: Chalmers targets super tax breaks](https://www.afr.com/policy/tax-and-super/one-fact-stands-out-chalmers-targets-super-tax-breaks-20230220-p5clxs)Super tax breaks are clearly on the Treasurer’s agenda in the lead up to the May federal budget. [Chalmers makes pitch to ‘elevate and broaden’ use of super](https://www.afr.com/policy/tax-and-super/chalmers-makes-pitch-to-elevate-and-broaden-use-of-super-20230220-p5clvl)The Treasurer promised a “double dividend” for members and the economy would come from investing alongside government, while also hinting at tax crackdowns. [ consultation on Labor’s proposed purpose of superannuation definition](https://www.afr.com/policy/tax-and-super/chalmers-makes-pitch-to-elevate-and-broaden-use-of-super-20230220-p5clvl) open until the end of March, Treasury is bracing for a slew of submissions over the proposed wording that “the objective of superannuation is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”. [ the most subjective](https://www.afr.com/policy/tax-and-super/the-sentence-that-will-control-3-4-trillion-in-savings-20221110-p5bx6r) and go further than superannuation merely providing income to retirees. This provision is already contentious, with the 2014 Financial Systems Inquiry suggesting that the purpose of super could be to purely “provide income in retirement” without specifying a level, and some industry participants suggesting a “comfortable retirement” could be a suitable alternative.

Treasurer Jim Chalmers says while the government's immediate focus is on enshrining a definition for superannuation, that is not the end of the ...

“What could be more dignified than Australians getting early access to super because they’re 26 weeks unemployed and they’ve got a family. [Rachel Clun](/by/rachel-clun-hvf36)is an economics correspondent for The Sydney Morning Herald and The Age, based at Parliament House in Canberra.Connect via And if they can use their super to buy their own house, I think that is an outstanding purpose for superannuation.” The “preservation of super” was to ensure superannuation contributions should not be accessed unless as retirement income, it said. Once people retire, investment earnings in their fund are generally tax-free, and payments to individuals once they are aged 60 or over are also generally taxed at 0 per cent. “We agree there should be a purpose, and it should be about the individual and how the individual uses their money, not how the Treasurer wants to use their money for his purposes,” he said.

Jim Chalmers will push to legislate a common objective for super funds after branding early withdrawals during COVID as "disastrous policy".

He said it intended to give people access to “their money”. Superannuation is a great program, but I don’t think you should rule out letting people have access to their own money,” Mr Joyce told Seven’s Sunrise on Monday. My kids and I would have been left homeless, let’s have a chat about that,” she told Nine. The Association of Superannuation Funds of Australia welcomed the proposed objective as “the next chapter in the Australian superannuation story”. The paper also outlines the importance of a “sustainable” superannuation system that “should be cost-effective for taxpayers in achieving retirement outcomes”. 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”.

Preserve savings: End early access to super for home buyers;; Deliver income: End wealth accumulation via tax-effective bequests;; Dignified retirement: Enough ...

[Sign up now](https://login.myfairfax.com.au/signup_newsletter/10122?channel_key=9ME3ACTT4ZYY1fEMfvR2EA&callback_uri=https://www.afr.com) [Hannah Wootton](/by/hannah-wootton-h1gmvp)is a reporter for the Financial Review. “Superannuation tax concessions should be targeted at those who need it, because it costs a lot of money to the taxpayer.” Connect with Hannah on [[email protected]](mailto:[email protected]) [Aleks Vickovich](/by/aleks-vickovich-p4yvjj)is the wealth editor. The government’s proposed wording “heads in the right direction”, he added. “It’s just not the place of the government to direct members’ money. “While all Australians can save for their desired lifestyle in retirement, this outcome … It is not the government’s money to appropriate.” “If we fail to act … “If there are good alternative investments, why is there not superannuation money already in them? [Opinion The generous tax treatment for Australia’s 100 largest self-managed superannuation funds cost taxpayers $200 million a year. Labor proposes to legislate that “the objective of super is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.

However, it is also being used for home renovations and new cars, prompting concern among financial counsellors. The Australian Taxation Office (ATO) will let ...

If people are approaching them and saying, 'Hey, I can help you get your superannuation out early', treat it with suspicion," he said. "There are things out there other than accessing your superannuation early if you are finding yourself in financial difficulties now." "If you are in financial trouble, there is a financing counselling special that is available to all Australians for free," he said.

Treasurer Jim Chalmers said the government's proposed vision for superannuation to deliver “dignified” retirement income was aimed at closing the gender ...

A joint letter from the Association of Superannuation Funds of Australia and Financial Services Council had called for the inclusion of the word “comfortable”. “The 15 per cent objective which you’ve heard people talk about in the past, that’s not something that we’re focused on or budgeting for in the near term,” he told an event in Sydney hosted by [15pc super not in the ‘near term’ plan: Chalmers](https://www.afr.com/policy/tax-and-super/15pc-super-not-in-the-near-term-plan-chalmers-20230220-p5cly9)The Treasurer said the government’s proposed vision for superannuation to deliver “dignified” retirement income was aimed at closing the gender balance gap. It’s a really good foundation and we want it to work for more people. [Opinion The SG is currently 10.5 per cent but is scheduled to hit 12 per cent from July 2025. Chalmers’ vision may have electoral appeal but his thesis is shaky](https://www.afr.com/policy/tax-and-super/chalmers-vision-may-have-electoral-appeal-but-his-thesis-is-shaky-20230220-p5clxr)The Treasurer can argue making superannuation more “equitable and sustainable” is in the national interest. ‘One fact stands out’: Chalmers targets super tax breaks](https://www.afr.com/policy/tax-and-super/one-fact-stands-out-chalmers-targets-super-tax-breaks-20230220-p5clxs)Super tax breaks are clearly on the Treasurer’s agenda in the lead up to the May federal budget. But it’s a really good start. [Chalmers makes pitch to ‘elevate and broaden’ use of super](https://www.afr.com/policy/tax-and-super/chalmers-makes-pitch-to-elevate-and-broaden-use-of-super-20230220-p5clvl)The Treasurer promised a “double dividend” for members and the economy would come from investing alongside government, while also hinting at tax crackdowns. “It’s not perfect and we’re engaged and tasked with trying to make it better. [pursue legislation that enshrines](https://www.afr.com/link/follow-20180101-p5clvl) that the purpose of super is to “preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.

The Coalition, which gave Australians $36bn worth of their super during Covid, are unhappy about the proposed changes to retirement savings.

My kids and I would have been left homeless, let’s have a chat about that,” she told Nine. Superannuation is a great program, but I don’t think you should rule out letting people have access to their own money,” he told Sunrise. You will be getting tens of thousands of dollars when you retire.

The federal government wants to tighten the lock on superannuation funds to make it more difficult for Australians to access their savings early, ...

and my sons would not have had a roof over their heads,” she told Sky News. The consultation paper has called for stakeholder feedback by March 31. “Had I not been able to access my super in full, I can assure you … At the time, employers had to contribute just three per cent of an employee’s earnings. By mid-2025, employers will have to contribute at least 12 per cent of an employee’s income into their designated fund. According to Treasury, 78 per cent of Australians have money in their superannuation account.

Treasurer Jim Chalmers' plan to overhaul the $53 billion a year in tax concessions on superannuation accounts faces early opposition from the Coalition amid ...

The government’s suggestion would preserve super savings for retirement. “We know that their one big announcement at the last minute ... “Right now, we’re on track to spend more on super tax concessions than the age pension by around 2050. [Subscribers can sign up to our weekly Inside Politics newsletter here](/link/follow-20170101-p5apym). All superannuation accounts enjoy a concessional tax rate of 15 per cent. “It is greedy.

The $3.3 trillion in superannuation savings belongs to workers. It is money that hardworking Australians have earned and set aside for their retirement, and ...

Both Labor and the Coalition have supported a move to increase it to 12 per cent over time. In the near term, we're trying to get it to 12." we're not trying to get it to 15. It said that in 2019-20 there were 1 million women who missed out on $1.3 billion, with a total of $10.8 billion lost over seven years. So I think this objective is a really important part of being caring of what super is there for." And does it have Australians' best interests, rather than the superannuation sector's best interests, at heart? "And we're trying to make sure people get the super that they're entitled to, we're trying to make sure that we take some steps on the gender gap." "It might be about estate management, it might be about tax management, but it's not about retirement income, and that really is not the purpose of superannuation." "And so we're proud of the role that we played in arguing to ensure that we get that from, you know, being on that path to 12." But what is it proposing? "We agree there should be a purpose, and it should be about the individual and how the individual uses their money, not how the treasurer wants to use their money for his purposes," he said. The federal government has suggested that the objective of superannuation "is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way".