Opening up early access to super for housing would have a negative effect on the balances of even those members that don’t dig into their savings, with funds forced to adopt more conservative investment strategies and hold more liquid assets.
The circa $88 billion industry fund for workers in health and community services reckons that alleviating the affordable housing crisis will boost its other investments by easing the cost of living and inflation.
FSC’s six-point plan for the Government on super
(pictured: Sally Loane)
Sally Loane, the Financial Services Council chief executive, peppered the Government with criticism for considering taking changes to super to this year’s election during her address at the latest Women in Super lunch in Sydney last week.
The lunch, which confirmed another round of the popular scholarships for Women in Super NSW members, was told that, despite its promises of “not to tinker with super, the Government appears to be considering doing just that”.
A proposal to increase the effective capital gains tax within a super fund would erode savings and put the brakes on savings, Loane said.
Also, it was rumoured that the Government was considering cutting the concessional tax level from $30,000 to $20,000 which would push the goal of self-funded retirement further into the future.
“Tinkering like that creates uncertainty,” Loane said. “The question should not be about tax but, rather, how we get people to save more.”
The FSC has proposed a six-point plan to the Government:
- For every Australian saver to have confidence in the superannuation system (“We Australians have property in our DNA. It’s about time we treated superannuation in the same way.”)
- Define its purpose and make it law
- Increase the SG to 12 per cent by 2022
- Encourage voluntary savings to allow women and carers to catch up
- Provide tax concessions for low and middle-income earners
- Increase the preservation age in line with the age pension and life expectancy.
Women In Super NSW announced that its scholarship program with AGSM at the University of NSW would continue in 2016, with applications closing on April 22 for a range of short executive courses.
The number of successful applicants is not fixed – it depends on their quality. Last year there were three: Alexandra McGuigan of Tribeca Investment Partners, Melinda McMullan of UniSuper and Heather Gyton Carroll of Perpetual.
Inquiries to Katherine Pledge on (03) 8677 3827 or [email protected]
