Seven per cent switch funds since July

Three-quarters of Australians would prefer the superannuation contributions tax to be scrapped rather than a tax cut, and only 7 per cent of the public has changed superannuation funds since the introduction of choice, according to research conducted by the Association of Superannuation Funds of Australia (ASFA).

The study revealed that when faced with a choice between a $6 a week tax cut and the abolition of the superannuation contributions tax, 75 per cent of respondents favoured the latter.

Australians were also shown to have a desire to increase their retirement savings if the Government created a more conducive environment to do so.

When asked about sacrificing salary for a greater super contribution, 30 per cent of participants said they would consider it, while 50 per cent of those questioned were happy to have super contributions as a portion of future pay increases. An even greater proportion of respondents — 75 per cent — were enthusiastic about this arrangement if the Government agreed to match their super contributions up to a certain amount.

The survey also showed people approved of the Government’s co-contribution scheme but thought it wasn’t broad enough in its application. Eleven per cent of those questioned said they were already receiving it, while 30 per cent indicated they would like to receive it but knew they were not eligible.

However, the same research found the new choice of fund regime had minimal impact on the public, with only 7 per cent of respondents confirming they had changed funds since the legislation was introduced.

Of this 7 per cent, 4 per cent made a deliberate decision to switch funds, 2 per cent changed in conjunction with starting a new job, and 1 per cent were forced to change as their existing fund had been shut down.

The main catalysts for change were shown by the study to be the commencement of a new job, a change of fund by employers, and the consolidation of various super entitlements.

ANOP conducted the quantitative research on behalf of ASFA over September and October. It surveyed Australians between the ages of 25 and 64 who were employed on a full-time or part-time basis.