The 2022-2023 Federal Budget has delivered on the Government’s promise to implement its election commitments.
CEO of the FSC Blake Briggs said: “The Government’s new Housing Accord delivers on the Government’s commitments and the financial services industry looks forward to the opportunity to take on the historical challenges that have prevented institutional capital from investing in affordable housing.
“The FSC will work constructively with Government to ensure that any capital deployed is consistent with the legal obligation on superannuation trustees to promote the best financial interests of members.”
The FSC also welcomes additional funding to introduce climate reporting standards for large businesses and financial institutions, in line with international reporting requirements.
“The Government has responded to funds management industry calls for a mandatory, principles-based climate-reporting regime that will support investment in climate reduction and abatement, and we look forward to supporting the Government with this initiative.”
The FSC welcomes the Government’s Women’s Economic Equality Taskforce, which will advise on the optimal settings for the extension of the Government Paid Parental Leave scheme from 18 to 26 weeks, but urges the Government to go further to promote women’s economic security in retirement.
“It would be a missed opportunity if this taskforce did not recommend paying superannuation contributions on the Government’s paid leave program, which would help close the gender gap in superannuation – women on average have 25 per cent less superannuation than men at retirement.”
The FSC is encouraged to see the Federal Budget contained no adverse changes to superannuation taxation and contribution settings.
“Stability in the superannuation tax and contribution settings ensures consumers have the confidence they need to make financial plans for their future as they battle inflation and plan for an uncertain global outlook.
“Future budgets must continue to honour election commitments to provide stability and certainty in superannuation policy settings, and an enhanced focus on structural reform and economic growth to achieve Budget sustainability – not just increased taxes.”
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About the Financial Services Council The Financial Services Council (FSC) has over 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world.