What the hell are the actuaries on about when they say fix super now ? What is wrong with super that needs to be fixed. When you read the article you find the article is not about superannuation at all it is about tax.
What the actuaries are talking about is increase the tax on superannuation for the high income earners. They want to reduce the definition of a high income earner from $300,000 pa to $180,000 pa.
My question is if you increase the tax on superannuation contributions wont that reduce the amount of money in superannuation ? Is that at odds with the objective of superannuation which is to grow a larger pool of assets to fund retirement. That is the purpose of superannuation.
The actuaries are confused when they say fix super now. What they are saying for reasons known only to them is that the Government should use higher superannuation contribution taxes to fix the budget black hole. Now that superannuation has grown from basically $0 to approx $2 trillion dollars over 25 odd years now is not the time to encourage Governments to start taking more money out of the superannuation system. Where will it stop and who trusts the government to look after them in retirement.
To say now is the time to fix super is misleading. There is nothing wrong with superannuation and this article has everything to do with budget repair and nothing to do with superannuation and it is no wonder the public get concerned where you have reputable organisations making cheap politically motivated statements about superannuation that have nothing to do with superannuation at all or how well it is going.
Here is a question for the actuaries to consider, If the superannuation system was to grow from $2,0 Trillion dollars to $6.0 Trillion in the next 30 years what would be required for that to happen and how would that impact the government, its tax collections and Centrelink payments? That is something that would be useful to know and is right in the zone of the professional actuary. Superannuation is only ever discussed in Australia in light of taxes and that is totally misrepresenting the value that superannuation brings to the Australian economy.
The actuaries should not be lowering themselves into cheap political statements that do very little in the short term to fix a massive problem being government spending and the Governments complete lack of control over their spending. That would appear to be government on both sides of the spectrum.
Keep superannuation as a retirement incomes strategy and not a government deficit solution.