2023-2024 Pre-Budget

The forthcoming Federal Budget presents the new Government with an ideal opportunity to show where it stands on super: not just celebrating the successes of recent decades, but acknowledging that our world-class super system can and must be fairer, more equitable and more transparent as it helps to deliver more adequate retirement incomes.

Much of the analysis and recommendations contained in this submission are organized around these key themes:

1. Fairness and Equity
2. Adequacy and
3. Transparency.

Under each we present a series of evidence-based recommendations for action by the Government that will help those who need it most, while making the system more transparent for all.

A full list of our recommendations is outlined the submission. They include recommending the Government take steps to:

• Help members better understand the comparative performance of their super by extending the APRA performance test to cover all Choice products, and amending the YourSuper comparison tool to rank performance results by net returns before being ranked by fees.
• Make the entitlement to super truly universal by extending eligibility to employees under 18 who work for less than 30 hours per week, independent contractors and the self- employed, and to those employed under the new remote jobs scheme that will replace the Community Development Program.
• Reduce the gender super gap by paying super on Commonwealth paid parental leave, and encouraging all employers who offer such leave to also pay super.
• Better understand the drivers of the gender super gap by requesting the Office of Women commission research to measure and report on the extent to which menopausal symptoms impact women’s employment and retirement decisions, and how these impact their super balances and retirement incomes.
• Reduce the extent to which the concessional taxation of super favours those on high incomes by introducing a $5 million limit on the total amount that can be held by individuals across the accumulation and pension phases of their accounts.