If the superannuation guarantee is frozen at 9.5% the replacement rate would be 55%, compared to the assumption of 84% that the Government’s Retirement Income Review made, according to Industry Super Australia.
If the recession becomes longer lived than people perceive, industry super funds could run into illiquidity issues if the government decides to tap into super a third or fourth time, according to ClearView.
Those members of AustralianSuper who empty out their superannuation accounts via the Government’s hardship early release scheme will continue to have life cover worth $10,000 for six months via an arrangement worked out between the superannuation and major insurer, TAL.
Australia’s economic recovery can be helped by democratising investment in critical domestic infrastructure developments by making it more accessible for those with money in super, according to the Financial Services Council.
Superannuation funds believe that while they may not be ultimately responsible for frauds committed under the Government’s hardship early release scheme their members will still be made to pay via the member’s reserve.
The Australian Prudential Regulation Authority has suggested that no one metric should be used to reject the MySuper status of superannuation funds but that persistently under-performing funds should be prepared to exit.
Too many superannuation fund trustees have been looking for excuses not to merge rather than getting on with the process in the best interests of their members, according to the Australian Prudential Regulation Authority.
Superannuation funds which want to merge should be able to find willing merger partners or should be considering their exit from the industry, according to the Australian Prudential Regulation Authority.
In circumstances where the Government’s superannuation early release scheme represents a 30-year departure from bipartisan policy, Industry Super Australia has argued that scrutiny of the regime is justified.