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An extra $26 billion found in super savings



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N E W S R E L E A S E T h e H on C o n S c i a c c a MP M in is t e r f o r V e t e r a n s ’ A f f a ir s

M i n is t e r A s s i s t i n g t h e

T r e a s u r e r f o r S u p e r a n n u a t io n

20 December, 1995

AN EXTRA $26 BILLION FOUND IN -SI PER SAVINGS > - - * . > ·

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'The importance of the Federal Government's long term superannuation policy was confirmed today with the release of up-to-date figures showing that Australians' superannuation assets were $224 billion and not $197 billion quoted by people in the area of superannuation.

The Minister Assisting the Treasurer for Superannuation, Con Sciacca, said the latest superannuation assets figure of $224 billion at June 1995 was released in the Insurance and Superannuation Commission's new quarterly Bulletin.

"This figure is a more comprehensive measure of the superannuation system and shows that there is about $26 billion more in superannuation assets than had previously been thought," he said.

Mr Sciacca said one of the major reasons behind the success of the Government's superannuation policy was its long term investment nature which had allowed the magic of compound interest to do its work.

"However, the long term nature of our superannuation savings system is under threat from the Federal Coalition," he said.

"Despite the amazing backflip from the Coalition that it now, supposedly, endorses the Government's 15 per cent target, John Howard, Peter Costello and their Coalition team will change the nature of the current superannuation system from long term, higher rates of return to short teim, lower rates of return."

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Mr Sciacca said it had been estimated by the Retirement Incomes Modelling Task Force that the Coalition would cost Australia $200 billion over the next 25 years by giving banks an unfair advantage and allowing them to introduce

Retirement Savings Accounts (RSAs).

"When Mr Costello talks about RSAs providing greater freedom-of-choice and feigns concern for people with small superannuation amounts just remember he wants to gives banks access to cheap money, which will result in less money being in the ordinary worker's pocket when he or she retires. Remember, be wary of the wolf in sheep's clothing."

M r Sciacca said banks already have access to superannuation savings through their life offices and have never shown any interest in small amounts ^beforehand. In fact, many Australians know from experience that bank charges ihave eaten away at their money in bank accounts and they don't give very high

interest rates.

"However under legislative changes brought in by the Government this year, small superannuation amounts will be protected and can no longer be eaten away by fees and charges so they will be able to grow into savings for retirement."

Media Adviser: Amanda Lampe (06) 277 7820 (W) (0411)241 356