Chapter 1Introduction
Referral of the inquiry
1.1On 27 November 2023, the Senate referred the following matter to the Economics References Committee (the committee) for inquiry and report:
Improving consumer experiences, choice, and outcomes in Australia’s retirement system, with reference to:
(a)regulatory and tax impediments to innovation and uptake of insurance products in retirement;
(b)the economic costs and opportunities of innovation in our retirement income system;
(c)the interaction of health insurance, life insurance, general insurance, and social security supports to retirement outcomes, including options to improve incentives that drive consumer outcomes and support the sustainability of the retirement income system;
(d)the potential role of FinTech platforms, technologies, and innovations in supporting better retirement outcomes;
(e)policy options to support greater choice and quality of life in the retirement income system, including but not limited to the aged pension, financial advice, home ownership and downsizing, and insurance;
(f)progress on implementing the Retirement Income Covenant; and
(g)the impact of climate change on insurance premium affordability and accessibility;
(h)the impact that climate change is likely to have on insurance premiums for products including life, home and contents and small business;
(i)the impact of climate change on the value of assets (e.g. houses, investments) of retired people; and
(j)any other related matters.
1.2The committee was to report by 30 June 2024. On 26 March 2024, the Senate granted an extension of time to report until 30 June 2025.
Conduct of the inquiry
1.3The committee advertised the inquiry on its website and wrote to relevant stakeholders and other interested parties inviting them to make a written submission by 23 February 2024.
1.4The committee published 46 submissions which are listed at Appendix 1.
1.5The committee held one public hearing on 12 March 2024 in Canberra and via videoconference.
1.6A list of witnesses who appeared at the hearing is available at Appendix 2.
1.7Links to public submissions, Hansard transcripts of evidence and other information published by the committee for this inquiry are available on the committee’s website.
Acknowledgement
1.8The committee thanks those individuals and organisations who contributed to this inquiry, in particular those who made submissions or gave evidence at the public hearing.
References
1.9References in this report to the Hansard transcripts for the public hearing are to the proof Hansard transcript. Page numbers may vary between the proof and official Hansard transcripts.
Structure of this interim report
1.10Given the importance of home ownership to the retirement outcomes of Australians, the committee has decided to present an interim report focusing on the ways superannuation could be harnessed to contribute to increased rates of home ownership.
1.11This report is structured as follows:
Chapter 1 provides an overview the inquiry.
Chapter 2 explores the importance of homeownership to quality retirement outcomes.
Chapter 3 discusses superannuation withdrawal schemes.
Chapter 4 considers superannuation shared equity schemes.
Chapter 5 outlines superannuation savings schemes.
Chapter 6 discusses the use of superannuation as loan collateral.
Chapter 7 provides the committee’s views.