• Hannah Phillips

Is there a Superannuation Crisis?

The draft report of the Productivity Commission (PC) into the superannuation industry, released on Monday, has elicited many responses from all the various stakeholders.

The truth is that the superannuation system needs updating to reconcile it with contemporary circumstances but to date the vast majority of consumers have done reasonably well out of the current system.

As the PC’s report notes, the current superannuation model was developed by the Hawke - Keating government as part of the social wage embedded in the accord between employers, workers and the government.

As such it envisaged that workers would be employed by a single employer throughout their working life, that that employer would be a de facto custodian of their superannuation contributions and would choose a superannuation fund for them.

In the circumstances it was logical for superannuation to be embedded in the industrial relations system and for the choice of funds to form part of the enterprise bargaining agreements which were introduced by the Keating government.

The current workplace environment is radically different from the one that existed when superannuation was introduced.

John McDonnell

Want to know more? Subscribe to Inside Canberra

5 views0 comments

Recent Posts

See All

What’s Behind the Victorian Recovery Roadmap

Medical authorities have praised the Andrews government’s recovery roadmap but the business has slammed it as an over-reaction. The Prime Minister has said that he hoped the Andrews’ plan is the worst

Premiers Prefer To Stay Under the Doona

At last Friday’s National Cabinet meeting Scott Morrison put forward a perfectly reasonable plan to re-open the national economy based on isolating hot spots but the premiers preferred to stay under t

Parliament Resumes

Parliament resumed on Monday under novel circumstances. Some members participated by way of video link, while others from Victoria had to spend two weeks in quarantine in order to attend parliament. T