The Financial Services Council (FSC) has developed a six-point plan which its chief executive, Sally Loane claims will create greater confidence in the Australian superannuation regime.
Loane used her State of the Industry address in Sydney today to outline the plan which is largely predicated on the Government delivering on policy certainty and lifting the superannuation guarantee to 12 per cent by 2022.
The six steps of the plan, as outlined by Loane are:
- Give every Australian saver cast-iron confidence in the system. Take it out of the Budget cycle, stop the tinkering
- Define its purpose and make it law
- Increase the superannuation guarantee rate to 12 per cent by 2022
- Encourage people to save voluntarily beyond the 12 per cent guarantee — by maintaining contribution caps that are high enough to allow women and carers in particular to catch up on their savings after breaks from the workforce. We recognise that an additional three per cent would get the majority of people to self-sufficiency
- Provide tax concessions which give all Australians, most particularly low and middle income earners, an incentive to save, and
- Increase the preservation age in line with increases in the age pension and life expectancy.
"Taxpayer support for super must be consistent with the objective of more Australians being able to independently fund their retirements," Loane said. "We should focus on middle Australia, those with the greatest capacity to reduce their reliance on the age pension."
"By cushioning future generations against the cost of an aging population, it is more likely the living standards we enjoy today will also be enjoyed by our children."