Since my election to Federal Parliament, I have expressed concern about the direction of the superannuation system. I mentioned it in my First Speech and published a book in June 2020 to set out my concerns.
There is too much self-interest, far too much waste and not enough delivery on key objectives.
I welcome the report which will add more facts into the debate which has been polluted by foul self-interest.
I congratulate the Treasurer for commissioning this review.
While I look forward to reviewing the report in detail, I make three observations:
1. Superannuation is too expensive for Australian taxpayers. It appears super concessions will balloon, and the system will never pay for itself. We should adopt a clear objective and framework to ensure it becomes a net positive to budget scheme.
2. Superannuation has damaged home ownership which is an article of faith for the Liberal Party. The report seems to support the fact that the best way to avoid poverty in retirement is to own your own home. Home ownership is more important than super.
3. The fees are too high. We have addressed this in the 2020 budget with very welcome reforms but we should go further and establish a government default fund. This could cut the average fee from around 1% to 0.3% and negate the need for a higher mandatory contribution rate. The review indicates the reality that more super means less wages or a smaller deposit for a first home.
My book on super included in its title “how to fix super”. I am interested in fixing the scheme rather than throwing it in the bin.
Finally, I note there are very few stakeholders in this policy space who look at super through prism of national interest.
I hope that self-interest will no longer pollute the public debate on this important issue.
Australia is so heavily invested in super - we should make it work. I look forward to the debate this report will now support.
MEDIA | John Mangos | 0401 392 624