Today’s commitment from the Government to deliver better and cheaper superannuation funds for Australian workers is an important step towards providing a more secure retirement.
ACTU Secretary Jeff Lawrence said unions welcomed the release of the final details of the Government’s Stronger Super reforms, including the development of MySuper, which will replace existing default funds, with no entry fees and a ban on other hidden costs for members.
“Unions have supported the industry fund model for the past 30 years, based on its record of low fees, diversified investments and good returns. So we are pleased the Government has followed through on its election commitment with the release of the Stronger Super reforms.
“The new MySuper product could lead to workers paying up to 40% less in super fees and that is welcome progress in unions’ campaign to improve the adequacy of retirement funds for Australians,” Mr Lawrence said.
“We are also pleased the Government is working towards its commitment to increase the Superannuation Guarantee to 12%.
“Workers deserve a comfortable retirement but the current 9% contribution rate simply means that will not be an option for many Australians.
“It is however disappointing that to date Tony Abbott has refused to commit to improving superannuation outcomes through the increase.
“That is why unions this week launched a new campaign, Stand Up for Super, led by a petition of Australian workers addressed to Members of Parliament.
“Given the Liberal Party’s history of opposing improvements to the superannuation system since compulsory super began in the 1990s, we can have no confidence they will support this change either.
“However, we are pleased the Government is committed to improving superannuation outcomes for Australian workers and today’s announcement is an important step towards that goal.”
Mr Lawrence said today’s reforms would also mean measures to provide better information to workers on their payslips, so that they could see their superannuation had been paid, while regulatory bodies APRA, ASIC and the ATO would be provided with better tools to improve their oversight of superannuation
Details of the ACTU’s Stand Up for Super campaign is available online at www.standupforsuper.com.au It includes an online calculator so workers can see how much more in retirement income they would have with a 12% Superannuation Guarantee.
