Two key industry bodies will push the Government to include self-employed people in Australia's compulsory superannuation system.
The Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST) announced the recommendation at the Institute of Actuaries of Australia conference held in Sydney yesterday.
"Adequacy still remains a major issue with improvements still needed. One of the solutions is to bring the self-employed into the system to ensure they too will have an adequate retirement," ASFA director of policy Melinda Howes said.
Australia's retirement system is declining in universality with many people escaping the net, according to AIST policy committee chair Sandy Grant.
"We will be asking the Government to bring the self-employed back into the super net," Grant said.
Contract workers will also be targeted particularly as employers are only required to pay the compulsory 9 per cent superannuation once the threshold reaches $450 a month.
"Many workers earn less than the $450 from one employer, with many working three or four jobs particularly in sectors like the hospitality industry," Grant said.
"There needs to be a more holistic approach to retirement."
According to ASFA 26 per cent of self employed people have no super. A further 53 per cent of the self employed have superannuation balances of less than $40,000.
