Rest: Budget advances fairness and equity in superannuation

Rest, one of Australia’s largest profit-to-member superannuation funds, says tonight’s Federal Budget is a step toward a fairer and more equitable superannuation system.

“The Government’s proposed sustainable finance agenda and the planned Net Zero Authority, detailed this evening, are of key significance to Rest and its members,” said Rest CEO Vicki Doyle.

“The commitment to a sustainable finance framework, including a sustainable finance taxonomy, sovereign green bonds and mandatory climate-related financial disclosure requirements, in tonight’s Budget will provide certainty for institutional investors like Rest.

“Having a framework in place will bring consistency, comparability and confidence to the finance sector and should help to stimulate investment and member-friendly product disclosures.

“It could unlock significant capital allocation to support Australia’s transition to a low-carbon economy, and deliver strong long-term investment performance for our more than 1.9 million members. As the largest fund for Australians under the age of 35, it’s important we have a framework that can support the growth of their retirement savings in the decades to come.

“We look forward to consulting further with the Government and the broader industry to consider this framework.

“We also support the planned establishment of a national Net Zero Authority. This is a sensible step to support a just transition to a low-carbon economy, particularly for those affected communities in regional Australia.”

Previously announced changes, which include altering the concessional tax rate on earnings in superannuation accounts with more than $3 million, and the alignment of the Superannuation Guarantee to employer payroll cycles, also represent encouraging progress toward greater fairness and equity.

“The introduction of payday super is expected to directly benefit many of our members who work in low-income, part-time or casual jobs and receive their super contributions out of sync with their take home pay,” said Ms Doyle.

“The commitment to increase the visibility of unpaid superannuation through improved data matching capabilities for the ATO, as well as the establishment of recovery targets, are also positive measures, especially since young Australians and women are among the most impacted by this issue.

“As a fund representing more than one million women, including around one in every five young Australian women, Rest is urging the Government to add Superannuation Guarantee payments to the Paid Parental Leave scheme without delay.

“This much-needed improvement, in addition to the measures detailed tonight, will make retirement outcomes more equitable and address the gender gap that continues to disadvantage women.”