Budget did not leverage RIR

The Actuaries Institute has commended the Government on its various measures to improve superannuation announced in the Budget but believes it did not leverage the Retirement Income Review to make more impactful changes to the retirement incomes system.

The institute welcomed the removal of the $450 per month Super Guarantee (SG) threshold, the increase in the First Home Super Saver to $50,000, and the increase in the Pension Loans Scheme to provide more Australians with flexibility for funding their retirement.

However, it said the Government failed to address measures to help non-homeowners in retirement, particularly some of the most at risk of poverty in retirement – single female renters.

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Actuaries Institute president, Jefferson Gibbs, said: “The system also still lacks an overall objective for superannuation and its role in supporting retirement incomes.

“The Institute urges the Government to provide clarity on the purpose of superannuation, to enable more substantive reforms to be sensibly made to improve the system.”

The institute also commended the Government for taking steps to help Australians protect themselves against the risk of shock events, such as natural disasters. The Government announced detail about a reinsurance pool which was backed by a $10 billion government guarantee to improve affordability of insurance premiums in northern Australia.

Actuaries Institute chief executive, Elayne Grace, said: “Overall, the Institute welcomes targeted spending that increases the wellbeing of all Australians and is particularly pleased to see a significant increase in spending on many important areas, including aged care, mental health and having a strong and fair National Disability Insurance Scheme”.

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