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. The committee published 46 submissions.

1.4Following presentation of its first interim report in May 2024, the committee extended the call for submissions to 28 June 2024. The committee published a further four submissions and nine supplementary submissions. All published submissions are listed at Appendix 1.

1.5The committee held two public hearing on 12 March and 30 August 2024 in Canberra and via videoconference.

1.6A list of witnesses who appeared at the hearings 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 a public hearing.

Subject of the interim report

1.9The committee’s first interim report considered ways to harness superannuation to help first home buyers overcome the deposit hurdle. The committee’s second interim report will explore policy options harnessing superannuation to assist homeowners during the repayment stage, with particular focus on mortgage offset.