SuperConcepts says it’s #Time2Enshrine super objective

SuperConcepts has launched a campaign to enshrine the objective of the superannuation system in legislation, timing with the resumption of Parliament sitting today and getting ahead of another inquiry into the retirement system, which the Government has signalled is on the cards.

The #Time2Enshrine campaign aimed to underpin stability and enhance focus in superannuation, as constant changes to super rules were a big turnoff (the biggest, according to some surveys) for consumers considering making additional contributions to super.

“Superannuation is the most tax advantaged retirement savings vehicle and it’s disappointing these concessions and the advantages of making voluntary super contributions are often overshadowed by the constant fear of rule changes,” SuperConcepts chief executive, Lara Bourguignon, said.

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“It’s now time for the objectives of super to once and for all be enshrined in the legislation to avoid such a clash of policy ideas and the potential impact on people’s lives.”

In Bourguignon’s opinion, the objective of super should be aspirational and encourage self-provision in retirement, serving not only as a safety net but also as a means to financial independence and a dignified retirement.

Further, she believed that it wasn’t enough to just legislate these objectives, but that a mechanism should also be put in place to compel policymakers to refer to it when assessing competing superannuation proposals.

The #Time2Enshrine campaign encouraged people to discuss what purpose the superannuation system should serve, tagging comments and posts on social media that did so with the hashtag.

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Brilliant absolutely love this! About time common sense was introduced into an agenda pushed for too long by conflicted parties and political greed.

I agree. Superannuation should be about using amassed contributions to fund retirement and to decrease the need for publicly funded pensions. But it is likely to be stymied by self interest that desires a tax free nest egg to be handed on to children rather being expended by the pensioner during his or her lifetime. Guess a death tax is needed to overcome this tax dodge.

Unused superannuation balances usually are taxed to some degree when inherited by adult children. The tax free nest egg for children problem is driven far more by rules surrounding the "family home". Because homes have unlimited CGT exemption and unlimited aged pension means test exemption, there is a strong incentive for people to over invest in homes to avoid tax, claim welfare, and maximise inheritances. It's part of the reason Australia has a property bubble.

There is a simple solution of course. Just put an upper limit (say $1M?) on the amount of family home value exempt from CGT and pension means testing. Cash poor pensioners who don't want to downsize can always draw up to 150% of the aged pension amount from their home equity using the Pension Loan Scheme.

I would like more information please - tried to google this and had no results, how does one put their support behind this? During the Labor franking credit policy debacle I had close contact with a number of very active Aust Independent Retiree groups as we campaigned against the proposed changes, would suggest that groups like these would very willingly throw their collective support into this; after all they have the most to lose with changes in future compared to what they had originally put money into.

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