Anthony Albanese’s government proposes major changes to superannuation

Australia’s retirement system is facing an overhaul, with the government looking for ways to block the early release of retirement money.

Albanian government treasurer Jim Chalmers will use a speech on Monday to propose more retirement protections to safeguard retirement savings.

Australians took about $36 billion out of their retirement funds during the pandemic.

Dr Chalmers says the early withdrawal of billions was a “disastrous policy” of the previous coalition government.

The government will now work to enshrine the definition of retirement in law to preserve retirement savings.

“This made us vulnerable to wrong turns and decisions,” he will say.

“It took us further away from where we need to be: better standards of living in retirement for as many Australians as possible.”

The proposed definition is: ‘The goal of super is to preserve savings to generate decent retirement income, along with government support, in an equitable and sustainable manner.’

The treasurer says legislating the definition will provide certainty and a common goal for superfunds.

The government will publish a consultation document to receive comments on the proposed reform in the hope of propping up the $3.3 trillion super-industry.

“In my opinion, defining the job of supermarkets as generating retirement income is not limiting the role of supermarkets in our economy, it’s elevating and expanding it,” Dr. Chalmers will say.

‘A more defined focus on member delivery requires that funds always invest in a way that ensures the correct risk-return profile.

“As an industry, you are in the game of investing for the long term.”