Lift SG, says AIST

Fiona Reynolds

The Australian Institute of Superannuation Trustees (AIST) has expressed its regret at reports that the forthcoming final recommendations of the Henry Tax Review will not include a lifting of the superannuation guarantee beyond its current level of nine per cent.

AIST chief executive Fiona Reynolds said her organisation remained concerned that the Henry Committee appeared to have found no case for lifting compulsory superannuation guarantee contributions above nine per cent.

She said the AIST would continue to advocate for a rise to 12 per cent.

“Research consistently shows that nine per cent compulsory super over a working lifetime is still not enough for most Australians to enjoy a financially comfortable retirement,” Reynolds said.

Commenting about other reports concerning what might be contained in the Henry recommendations, Reynolds said the AIST would welcome proposals that would enable retirees to swap super payments for a government-provided guaranteed lifetime income scheme.

“Longevity risk and strengthening income security for an ageing population are major challenges facing Australia,” she said. “The ability to exchange super payments for a Government-provided guaranteed lifetime income could open a valued and flexible option for retirees — particularly those with small super balances and limited assets.”