AMP CEO warns on super savings incentives

Craig Dunn

The Australian superannuation system has been one of the cornerstones that have enabled the nation to weather the global financial crisis, according to AMP chief executive Craig Dunn.

Addressing the Trans Tasman Business Circle this week, Dunn warned the Federal Government against adopting regulatory measures capable of undermining the effectiveness of superannuation.

He urged a balanced approach to the regulation of financial services to “avoid the unintended consequences of reducing competition or lowering the rate of personal savings in Australia, and consequently the effectiveness of superannuation”.

“Superannuation has enabled our nation to accumulate a large savings pool of more than $1 trillion. That savings pool has been instrumental in helping to cushion Australia from the worst impacts of the global financial crisis, enabling Australian companies to draw on $90 billion in new capital over the last financial year,” Dunn said.

In what appeared to be veiled reference to the May Budget changes to superannuation and the interim recommendations of the Henry Taxation Review, Dunn said by and large Australians were not natural savers but responded well to savings incentives.

“The tax incentives within the superannuation system give people an incentive to save for their financial security and it offers extraordinary benefits for the Australian economy,” he said.