The Albanese Government is moving to enshrine an objective of superannuation in legislation as part of its agenda to strengthen and maximise the benefits of the nation’s super system.
An agreed objective of super will serve as a guide for future governments, regulators, industry, and the wider community, instilling greater confidence in the system.
The Superannuation (Objective) Bill 2023, which was introduced to parliament today, defines the objective of super as: to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.
The last decade saw the former government raid the superannuation system for its own purposes with a devastating impact on the savings of millions of Australians. Legislating an objective of super will help prevent this happening again.
The objective will help ensure super delivers on its foundational promise of providing a dignified retirement for more Australians.
In the future, any proposed changes to super legislation will be judged against the objective. This will make policymakers more accountable when considering changes that affect Australians’ retirement savings.
The objective will not alter superannuation trustees’ existing obligations or provisions around the early access to super on compassionate grounds.
Superannuation is a significant source of capital, contributes to the strength of our financial markets, and there are opportunities to leverage superannuation investment in areas of national economic priority where it aligns with the best financial interests of members.
Having a clear, legislated objective of super will help ensure these broader benefits can be maximised.
Built by Labor, the now $3.5 trillion super system is the fourth largest pool of retirement savings in the world.
The Albanese Government is committed to protecting and strengthening the super system so that it delivers a dignified retirement to more Australians and helps build a stronger and more resilient economy.