As outlined in Tuesday’s budget, the government has axed the $450 superannuation guarantee threshold, reduced the eligible age for the downsizer contributions scheme and eased the working test for older Australians.
It has also raised the First Home Super Saver cap to $50,000 from $30,000 – allowing first home buyers to make more voluntary contributions with their super fund to place towards a house deposit.
The government also committed to an $11.2 million funding boost for APRA’s work in regulating super funds, alongside injecting advocate group Super Consumers Australia with $1.6 million.
The Actuaries Institute has commended the changes aiming to improve flexibility and equity within the super system, but it has cautioned that the government has failed to solve remaining issues.
The budget did not leverage the findings of the Retirement Income Review to make meaningful changes for the retirement incomes system, the institute reported, pointing to issues such as measures to help non-home owners (renters) in retirement. In particular, single female renters are of the largest concern, being the most vulnerable.
“The system also still lacks an overall objective for superannuation and its role in supporting retirement incomes,” Actuaries Institute president Jefferson Gibbs said.
“The Institute urges the government to provide clarity on the purpose of superannuation, to enable more substantive reforms to be sensibly made to improve the system.”
