Chris Pearce, the Shadow Minister for Financial Services, Superannuation and Corporate Law, has suggested paying out a portion of the superannuation guarantee obligations on behalf of small business employers to help them with their cash flow. The proposal would run for a period of two years.
Pearce said the measure would protect 3.8 million jobs.
“Our proposal would mean that the Commonwealth would contribute a substantial portion of the superannuation guarantee payments that employers are required to make on a quarterly basis,” Pearce said.
The proposal would maintain and contribute to the Coalition’s long-term policy of fostering growth in super and enhance the adequacy of super accounts, Pearce said.
The proposal was likely to save jobs and sustain the level of super contributed to retirement, according to industry sources, the release said.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.