The Financial Services Council has released its six-point plan to make Australia's superannuation system more robust.
As per the FSC's statement, the first three points are: "Give every Australian saver cast-iron confidence in the system. Take it out of the budget cycle, stop the tinkering"; "Define its purpose and make it law"; and "Increase the superannuation guarantee rate to 12% by 2022".
These are followed by: "Encourage people to save voluntarily beyond the 12% guarantee - by maintaining contribution caps that are high enough to allow women and carers in particular to catch up on their savings after breaks from the workforce" (the FSC recommended an additional 3% would "get the majority to self-sufficiency"); "Provide tax concessions which give all Australians ... an incentive to save"; and "Increase the preservation age in line with increases in the age pension and life expectancy."
Commenting on the plan, FSC chief executive Sally Loane said, "Superannuation should not be raided to fill Budget holes or fund pet projects. Options which have been floated in the public arena all involve taxing super harder.
"Options being debated, including a lower concessional contributions cap, would particularly penalise older workers who are trying hard to save more in their last decade or so of work.
"For a policy that is only 24 years old, there is a lot of amnesia about what superannuation is for. I want to build a strong case for cool heads to prevail in the at-times febrile debate on tax and superannuation."
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