Superannuation is something most don’t talk about or understand but with an election campaign underway, it’s turned political. From one end, you have Treasury estimating the budget misses out on more than $30 billion a year in tax revenue through super tax breaks. From the other, there’s Commonwealth Bank chief Ian Narev and John Piggott, a member of the Henry panel that reviewed Australia’s tax system in 2009, warning the government not to use super to fill black holes now appearing in Wayne Swan’s budget. Expect lots of coverage around super over the next seven months.
With poor returns, people are losing confidence in superannuation. They’re confused. Bringing them back is the big challenge for super funds over the next five years.