A lack of certainty about how superannuation will be treated for tax purposes is causing Australians to save rather than spend, according to ANZ’s Co-head of Australian Economics, Felicity Emmett.
Addressing the Association of Superannuation Funds of Australia (ASFA) conference, Emmett provided data confirming there had been a significant increase in savings since the Global Financial Crisis, particularly among older Australians.
“They are uncertain about how their super will be taxed in the future,” she said but noted that this “precautionary” saving was serving to crimp growth.
Emmett said it was in these circumstances that the Government needed to create a situation where people had certainty about the future of their superannuation and therefore, a willingness to spend.
