Indigenous people will retire with 23% less income than non-Indigenous Australians, according to new research by Griffith Centre for Personal Finance and Superannuation.
Recent proposed changes to Australia’s superannuation regime – from freedom of choice for default funds, to lifting the contributions rate from 9% to 12%, to reforming who pays how much tax, all make a great deal of sense. But they also fail to address a more fundamental problem which is the moral hazard implicit within the existing superannuation investment model.
It’s no secret that our superannuation system is unfair. Over half the value of the tax breaks goes to the top 20% of income earners, people who already have enough resources to fund their own retirement.