News & Publications
2016-04: Objective of Superannuation
The Treasury recently released a Discussion Paper on the Objective of Superannuation. AAG made a written submission that:
- Endorses the calls by the National Aged Care Alliance and the Council on the Ageing for an independent, comprehensive review of the retirement income system, instead of looking at superannuation in isolation.
- Suggests that the overall objective of the retirement system should be to provide an adequate standard of living on older age.
- Suggests that the government should explicitly state that addressing inequity is an objective of the retirement income system.
- Suggests that the primary objective of the superannuation component of the retirement income system should be to provide income in retirement.
- Strongly agrees that the purpose of superannuation is not to allow for unlimited wealth accumulation or bequests.
- Supports some of the subsidiary objectives of superannuation proposed by the Financial System Inquiry (FSI).
- Makes comments about the other subsidiary objectives proposed by the FSI.
You can read AAG's submission here
In the May 2016 Federal Budget, the Government announced that the objective of superannuation, which for the first time will be enshrined in legislation, is ‘to provide income in retirement to substitute or supplement the Age Pension’. You can read more information here.
Legislsation to enshrine the reforms passed on 23 November 2016. Further information is available here.