The Financial Services Council (FSC) has set a minimum 12% Superannuation Guarantee rate by 2022 as a policy priority – several years ahead of the currently legislated timetable.
The FSC has released its statement of policy priorities for the next Parliament.
“This statement has been released at the beginning of the election campaign to inform the public and all political parties on the industry’s key policies,” said the FSC.
One of these priorities is “supporting middle Australians save for retirement by increasing the superannuation guarantee to 12% by 2022”.
The Superannuation Guarantee was set to reach 12% from 1 July 2019, however the Coalition amended the timetable so that a 12% rate is not set to be reached until 1 July 2025.
The ALP have not set out a timetable for the Super Guarantee rate should they win the election, only committing to ‘fast-tracking’ increases to the rate “when prudent”.
“FSC defines the objective of the superannuation system as to deliver dignity and independence for all Australians in retirement by providing replacement income that is adequate to provide a comfortable standard of living,” said the FSC.
“Superannuation must also reduce the burden of the aging population by reducing the cost of the age pension.”
Another policy priority is for “tax settings that promote adequate retirement outcomes, particularly for women who currently experience unequal retirement incomes relative to men”.
The FSC also calls for “a staged increase in the preservation age, linked to the age pension eligibility age, and increases in life expectancy, while preserving a reasonable gap, accompanied by an early release mechanism for those unable to work later in life”.