The Financial Services Council (FSC) has called for the Government to recognise superannuation with a clear and simple objective.
This would help to set the benchmark for measuring future reform and protect the system from unnecessary tinkering, it said.
It would also provide the basis for reforms such as paying super on paid parental leave, which had been pitched by organisations such as the Australian Institute of Superannuation Trustees (AIST).
Finally, it would give consumers greater confidence about their retirement decisions
Blake Briggs, chief executive of the FSC, said: “The FSC, like our counterparts at other associations, supports the simple objective that focuses on the goal of providing a comfortable standard of living for Australians, that supplements or substitutes the Age Pension.
“Superannuation should have a singular focus on the needs of consumers, not whims of politicians or the industry itself. An objective will help make this clear.
“Once the purpose of the system is enshrined then other reforms will naturally flow.”
The organisation welcomed the Treasurer Jim Chalmers confirming it would be one of his priorities during the Albanese Government.
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.