During the pandemic, Australians withdrew about $36 billion from their superannuation accounts, which Chalmers described as a "disastrous policy" from the previous coalition government.
The proposed reforms will involve enshrining the definition of superannuation in law, with the objective being "to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way."
Chalmers believes that defining the task of superannuation as delivering income for retirement will not narrow its role in the economy but rather elevate it and broaden it. By providing a common objective for super funds, legislating the definition will ensure certainty and enable a sharper focus on delivering for members.
According to the treasurer, the proposed reforms will encourage the $3.3 trillion super industry to always invest in a way that secures the right risk-return profile, as funds are in the game of long-term investing.
The government will also release a consultation paper to receive feedback on the proposed reform, which aims to safeguard Australians' retirement savings and improve living standards in retirement for as many people as possible.
