Making investments in critical domestic infrastructure projects assessible and attractive to Australians with money in superannuation can accelerate the country’s economic recovery, according to the Financial Services Council (FSC).
FSC chief executive, Sally Loane, said the new Australian Superannuation Infrastructure Investment Vehicles (ASIIVs) would unlock around $1.7 trillion in choice and self-managed superannuation funds (SMSFs) for infrastructure projects from investments who today had limited access to them.
Loane said democratising investment in critical domestic infrastructure developments made the projects attractive and accessible to those with money in super.
“ASIIVs will allow National Cabinet to turbocharge asset recycling programs by selling assets into a common vehicle to finance new job-creating infrastructure projects. They will also enable the creation of tailored vehicles for greenfield projects, such as community housing,” she said.
To help economic recovery, the FSC also recommended that the National Cabinet:
- Abolish stamp duties on life insurance products and property transactions. Stamp duties on life insurance cost Australians $644 million each year and eroded superannuation savings by $235 million each year through their application to group insurance policies;
- Align the company tax rate to 25% for all companies. The cut in the company tax rate for small businesses had a positive impact on employment and investment, and the same incentives to invest should exist for all Australian companies;
- Establish a co-contribution scheme for Australians who had accessed the early release hardship scheme and needed to top up their superannuation. The Government would contribute $1 for every $5 a member contributes, up to a maximum of $10,000 in member contributions;
- Older Australians be offered a one-off higher superannuation cap of $50,000, to be ‘carried forward’ if unused;
- Encourage business investment to modernise outdated financial products through a specialised tribunal, aimed at lowering the cost of financial advice for Australians;
- Accelerate the Significant Investor Visa (SIV) program to support migration and build on the $11 billion it had already contributed to direct investment; and
- Remove legislative barriers so life insurers could fund medical treatment to help injured Australians get back to work.