Minister for Superannuation Chris Bowen reaffirmed his commitment to creating a long-term blueprint for the superannuation industry at the Association of Superannuation Funds of Australia (ASFA) conference held in Melbourne last week.
"Given that superannuation has grown to be such an important asset and will grow to be even more important, it's appropriate that we now ensure the system is as efficient as it can be, that our pool of national savings is as large as it should be," Bowen told an audience of super industry heavy-hitters.
"Indeed, it is not only appropriate - it is obligatory in my view."
Bowen said the pool of funds built up in Australia's super system was a vital factor in positioning the nation as a financial services hub in the Asia-Pacific.
In a discussion about adequacy, Bowen called attention to the situation faced by low-income earners.
"While the top 5 per cent of contributors make around a quarter of all concessional contributions to superannuation, 1.2 million people receive no income tax benefit on their concessional contributions," he said.
"We need to design a system that has genuine incentives built in to make superannuation attractive to low and middle-income earners."
However, in a question and answer session he said there would be no immediate changes to the current concessional cap rate.
Bowen also addressed the recent government decision to equip Medicare to provide a free clearing house to small businesses and foreshadowed future announcements.
"I see this as an important measure, but a modest one, compared with the far greater efficiencies that the sector must embrace and the government must do its part to encourage. I see the clearing house as a modest first step in our efforts for a more efficient system," he said.
The minister concluded by emphasising the possibilities for the industry that will come out of the Cooper and Henry reviews.
"We have a world-leading superannuation industry. This time of review is your chance to help shape the future of the industry and ensure it continues to be the envy of others around the world and provides the best standard of living for Australian retirees," he said.
