Speaking in Sydney yesterday, Mr Bryant said the draft terms of reference of treasurer Joe Hockey’s inquiry do not directly address the adequacy of what Australians are contributing to the superannuation system.
While the inquiry is looking into the stability of the superannuation system and the structural changes facing the industry, the superannuation guarantee is an area mostly outside the terms of reference of the inquiry, he said.
Mr Bryant said there had been considerable debate in recent years regarding the rate of superannuation, if it should be around 10 or 12 per cent.
“The reality is that the number needs to be something like 18,” said Mr Bryant.
Mr Bryant said in order for people to sustain the lifestyle they currently enjoy in this country there will have to be a meaningful increase to the system.
“At the 20-year anniversary of the implementation of compulsory superannuation, what we have to do is find an opportunity to actually do again what we already did,” said Mr Bryant.
“The early 90s was one of those rare moments of enlightenment between unions, business and government, and we actually need that degree of collaboration again.”
Mr Bryant said when considering the magnitude of policy issues and capital investment issues that this country faces in health care, ageing, provision of services, adequacy in retirement, there is only one place to get the capital to resolve these issues and that is the superannuation system.
He said while a lot had been achieved in the last 20 years, the superannuation system was still “grossly inadequate” for what it needs to do now and for what it will need to do 20 years from now and beyond.
Mr Bryant said governments need to ensure capital is going to the places where it is most efficient. He said they also need to "give life to new areas of capital efficiencies" through things such as incentives and deductions.
