ISA warns on Budget changes

In the wake of the Australian Greens having agreed to back the Government's Budget changes to pensions, Industry Super Australia (ISA) has warned of the need to take a look at the broader implications.

In a statement issued yesterday, ISA chief executive, David Whiteley, said super and pensions represented two sides of the same coin for millions of workers and that any changes needed to be considered in tandem.

"Our parliamentarians must adopt a measured and evidence-based approach to any changes to retirement incomes policy and quarantine it from the budget and electoral cycle," he said.

Commenting on the agreement reached between the Government and Greens, Whiteley said if there was to be a six week extension to the review of tax and retirement income, "lawmakers should at the very least take the opportunity to thoroughly examine the large body of evidence-based submissions to ensure the impact is fully understood".

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The ISA chief executive pointed to data produced by Rice Warner and ISA suggesting the proposed changes would impact most heavily on middle to low income workers earning average wages of $75,000 or below, and women most severely.

"One of the most troubling outcomes of this proposal is that around 80 per cent of single women retiring in 2055 will be disadvantaged," Whiteley claimed.  

"As it is, around 63 per cent of single women will not be able to retire comfortably through to 2055, even with super, pension payments, and other savings combined."

"No changes should be rushed through the Parliament until all stakeholders and policy experts have had an opportunity to make submissions to the retirement income review process."