The Association of Superannuation Funds of Australia (ASFA) has warned the Federal Government that voluntary contributions to superannuation have all but dried up giving rise to the need for the Commonwealth to do something to restore confidence in superannuation as an investment destination.
ASFA policy director Melinda Howes said the feedback being received from ASFA members suggested that consumers were now preferring other investment vehicles to superannuation.
She said feedback from recent industry think tanks had suggested that people had been unsettled by the interim announcements relating to the Henry Review of Taxation and the contents of the May Budget.
Howes said the changes had unsettled fund members who were now concerned about the sustainability of their superannuation.
She said the Government needed to strengthen the so-called “three pillars” of Australia’s retirement incomes policy, particularly the superannuation guarantee and voluntary contributions.
“Only when the average Australian knows that current and future governments will support the superannuation system will their confidence in the system be rebuilt and all Australians can get back on track for funding an adequate retirement,” Howes said.
