Australia’s financial services sector has an opportunity to use the federal government’s advice and superannuation reforms to rebuild investor confidence in the industry, the Assistant Treasurer said.
In his speech to the Association of Superannuation Funds of Australia national conference yesterday, Bill Shorten told delegates that Stronger Super, in particular MySuper, and the Future of Financial Advice (FOFA) reforms can be used to improve the confidence and performance of investor savings.
However, Shorten said it was now the decision of the industry and government to decide whether such a move could be achieved.
“We are the generation who will make the decision to put Australia in the box seat globally, to have the best national savings system in the world,” he said.
“There are many other hard decisions which this government has to make and we have to make as a people. But this decision of national savings you can help make.”
Shorten said the way in which industry participants, such as industry super funds, correspond with fund members; the way in which the government engage in public debate; and the way the government responds to the decision making of the Coalition is crucial for the future of Australia’s financial system.
“I don’t mind how you vote. But I do mind that we have an opposition who says no and are going to vote against increasing compulsory national savings from 9 to 12 per cent. That is not a great decision. That is not the path for a great nation,” he said.
“I do object that we have in politics at the moment, a political party sitting opposite where we sit, who says, ‘Sure, we don’t want to discriminate against older workers, but we’re not gonna vote to abolish the cap’, on the age cap so people working beyond 70 can get superannuation’.”
Shorten said the time had now come for the Labor government to fulfil its promises.
“To fulfil our part of the bargain with those who’ve come before us and those who will come after us, to make sure that this nation keeps being a great nation and making great decisions, by engaging in a positive political discussions, which says we want all Australians to be able to retire with some measure of decency after working their whole life,” he said.
On November 2, the federal government introduced legislation into the House of Representatives to increase the superannuation guarantee from 9 per cent to 12 per cent.
