The Australia government wants to make a clear objective for superannuation, which is a way for people to save money for retirement. Currently, there is no clear objective, so people sometimes use their superannuation savings for other things like buying a house or paying for healthcare, which is not the main purpose of superannuation.
The government has released a proposal for an objective that they want to make into law. The proposed objective is to save money for retirement and use it to provide income in a fair and sustainable way, along with support from the government.
The proposal has several parts:
- “Preserve savings” The money saved in superannuation should be used for retirement income and not for other things, except in special circumstances.
- “Deliver income” The purpose of superannuation is to provide income in retirement, not just to save on taxes or leave money to others.
- “Dignified” People deserve a high standard of living in retirement, which includes both superannuation and government support.
- “Equitable” People in similar situations should receive similar support, and those who need it most should get extra help.
- “Sustainable” The superannuation system should be cost-effective for taxpayers and not require too much government support.
The government wants to hold trustees accountable for using superannuation savings to provide income in retirement, and they want to make sure that investments meet certain standards to help people save for retirement.
If the proposal becomes law, there may be more opportunities for superannuation savings to be used in ways that benefit both members and the economy in the long term.
Overall, the government wants to make sure that people save enough money for a good retirement and that the superannuation system is fair and sustainable for everyone.