New report zooms out to reveal myriad economic benefits of superannuation


Australia's unique superannuation system has boosted the national economy in a variety of expected – and perhaps unexpected – since its introduction, according to a new report by the McKell Institute.

The report, Economic Benefits of Universal Superannuation takes a wide view to examine the economic impacts of Australia's superannuation system. The report makes a range of findings including:

  • Increasing the super guarantee will have a positive effect on the federal budget in the long-term
  • Superannuation funds reduce Australia's reliance on foreign sources of finance
  • Superannuation increases capital's focus on long-term sustainable returns
  • Superannuation offsets ageing population effects on economic growth
  • Superannuation reduces exposure to financial shocks by diversifying Australian household assets.

The McKell Institute's chair, Dr Craig Emerson, said the report was particularly timely given the federal government's current Retirement Income Review.

"The government's Retirement Income Review should make a strong effort to understand the wider economic benefits of superannuation," Dr Emerson said.

"Australia is considered to have among the world's best retirement incomes system, comprising compulsory superannuation, voluntary private savings and the age pension.

"This report is a reminder of the macroeconomic benefits of compulsory superannuation reducing Australia's reliance on overseas savings to fund investment opportunities."

The McKell Institute Victoria's executive director, James Pawluk, said the report was opportunity to correct common misunderstandings about the economic impact of superannuation.

"A good example of this is how we currently overlook the positive fiscal effect the super guarantee has on the federal budget over the longer term," Mr Pawluk said.

"Our new modelling shows that when you get your starting assumptions better reflect the real world, what you find is that a higher super guarantee helps strengthen the federal budget.

"Australians understand that our superannuation system has had a positive effect on millions of individual lives. What this research shows is that it has had an overwhelmingly positive effect on the national economy as well."

Australian Government Business Business & Economy Money & Finance

Privately Submitted Article or Event :
See Above Article or Event for Address, Sunshine Coast Wide
Privately Submitted Article or Event
Showing 10+ recent articles for this business
Charities welcome proposed JobKeeper 15% recognition 05 April 2020 | CCA is pleased the government has recognised the invaluable work being undertaken by 1.3 million Australian charity workers in proposed changes to the JobKeeper Payment going to Parliament this week. More information...
Bell Shakespeare launches short film festival for students 03 April 2020 | Calling all budding young filmmakers! National theatre company Bell Shakespeare is excited to announce a film festival where students are in the director's seat. More information...
JNI announces short-term package to support journalism 01 April 2020 | The Judith Neilson Institute today announced three new initiatives to support media organisations and journalists during the disruption caused by the COVID-19 pandemic. More information...
World's top universities unite to tackle climate change amid COVID-19 challenge 02 April 2020 | An International Universities Climate Alliance (IUCA) has been formed to help accelerate the fight against climate change. More information...
Australian Company offers thousands of Free Hand Sanitisers 27 March 2020 | National Online Auction Company Lloyds Auctions is offering thousands of free sanitisation products with free shipping Nationwide. More information...
Whole of population telehealth welcomed 30 March 2020 | The National Rural Health Alliance, the peak body for rural and remote health in Australia, welcomed the Australian Government's expansion of telehealth services which starts today. More information...
Muslims Down Under launch a new website 30 March 2020 | Muslims Down Under is a platform that enables reflection and engagement by promoting intellectual conversation and open dialogue. The group is well known for their complimentary 'Coffee and Islam' service in all... More information...
Caravan Parks stand ready to assist with quarantining arrivals 27 March 2020 | Caravan Industry Association of Australia says caravan parks stand ready to assist with the quarantining of arrivals from Australia's international airports as mandated by Prime Minister Scott Morrison this... More information...
The first ‘Charities Crisis Cabinet’ to meet on Tuesday 27 March 2020 | CCA is pleased to announce the establishment of the Charities Crisis Cabinet. The Cabinet will be seeking to enable as many charities as possible to survive through this pandemic and contribute to building... More information...
Camp at Home Heroes: Fun & education for staying home this Easter 27 March 2020 | Easter travel is off and rightly so, but you don't have to cancel your family camping experience! More information...

comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service