Super sector welcomes participation in housing measures
The Government avoided any radical moves with respect to superannuation, including applying a $5 million balance cap for the application of superannuation tax concessions.
Both the Australian Institute of Superannuation Trustees (AIST) and the Association of Superannuation Funds of Australia (ASFA) had supported the measure as being appropriate but the Government instead focused on housing.
And the measures, including a housing accord, were welcomed by the superannuation with ASFA saying the Budget addresses the pressing challenges of housing affordability and the stock of social housing.
“The measures announced bring together the necessary stakeholders across federal, state, financial institutions and superannuation, to address the obstacles to supply side accommodation,” the sueprannuation body said. “The commitment solidifies the involvement of superannuation funds, banks and institutional investors to play a role in addressing Australia’s social and affordable housing challenges.”
“Funds have been active participants in investing in affordable and essential worker housing as well as participating in community-based impact investment opportunities in the social housing space,” ASFA chief executive, Martin Fahy said.
“ASFA has long advocated for policy settings that will allow funds to deploy capital to drive innovation and productivity including through housing, energy transition and digital infrastructure, while delivering in the best financial interest of members.
“Tonight’s announcement will give superannuation trustees greater certainty with respect to the inclusion of these types of investments in their strategic asset allocations.
“Australian superannuation fund trustees will continue to assess individual investment opportunities on their merits and in the best interests of their members’ long-term retirement outcomes.”
ASFA notes the previously announced measure to allow more people to make downsizer contributions to their superannuation by reducing the minimum eligibility age from 60 to 55 years of age.
ASFA supports the Government’s decision to extend the paid parental leave scheme from 18 to 26 weeks over the next four years as a step towards addressing workforce participation and the gender superannuation gap.
The gender superannuation gap is largely driven from nearly every divorce having the woman keep the house and the man the super. Change this, and the “gender superannuation gap” will change, as too will the “gender homelessness gap” (which let’s face it, you’ve never read about because it is only men being shafted)
The superannuation gap has been shown to start early in the working lives of women and is caused by lifestyle choices. It can start with women being more conservative in their investment approach, it gets impacted with maternity leave and part time work which have an immediate impact and longer impact on promotional opportunities, tax strategies like salary sacrifice that make it more worthwhile to maximize the males super where he is often on a higher income and then continues later in life where the females are more likely to take on caring roles for elderly and reduce work hours. The super gap isnt a conspiracy, its a fact based on lifestyle choices which families or couples will choose to make together.
To be clear, you are suggesting that if some people take a more conservative investment approach, government intervention is required in order to make sure everyone ends up with the same. “It can start with women being more conservative in their investment approach”
With regards to maternity leave and part time work, if a couple stays together then it is irrelevant where the super pot sits. I’ve never had a retiree couple care whose super balance is larger; they see their assets as jointly assets.
The only time it becomes relevant is if there is a separation, so to fix this problem the Family Court should no longer allow the home to go to the wife and super to the husband, but instead ensure everything is equal.
Problem solved. And the feminists can move on to the next thing.