The development of Superannuation in Australia

The development of Superannuation in Australia has a rich and interesting history.

The introduction of the occupational superannuation provision in 1986 and the way it led to the Superannuation Guarantee legislation of 1992 provided the basis for what is now widespread and familiar – but were previously non-existent – industry superannuation funds in Australia.

It is fascinating to explore the idea of superannuation as a Government Policy-episode, both from original idea generation, through policy design, consultation and consensus building, implementation and evaluation and future iterations. Whichever window of the Policy Cycle you explore, it makes for interesting analysis from both the policy and political perspectives.

At its core, superannuation in Australia are the arrangements put in place by the Federal Government to support and encourage people in Australia to accumulate funds that provide them with an income stream when they retire (APH, 2019) ... including the Age Pension, Superannuation Guarantee and Additional Employee-based contributions.

At its core, superannuation in Australia are the arrangements put in place by the Federal Government to support and encourage people in Australia to accumulate funds that provide them with an income stream when they retire (APH, 2019).

Whilst the Analysis and Formulation stage of the Policy Cycle was elongated and non-traditional, I would argue that it eventually achieved its desirable ends, having brought together employers, employees and their representatives to design a system that is both 'independent' from a governance point of view and largely operating in the interests of members' it serves.

The key features of the retirement system in Australia will continue to be the yardstick measure of any proposed or actual changes to what is still considered by many around the world, as a best-in-class system for a democracy with an ageing population.