The Institute of Public Accountants (IPA) has warned the federal government against looking to use money in the country’s superannuation system for its own fiscal policy purposes, such as addressing budget shortfalls.
Further, the accounting body reminded the government retirement savings must remain dedicated to the purpose for which they were created, which is providing financial security to people in retirement.
IPA advocacy and emerging policy general manager Michael Davison pointed out Australians have spent decades building their superannuation funds for retirement “and should not be expected to bear the cost of government spending pressures”.
“Superannuation is not a ‘national asset’. It is not an ATM for governments facing fiscal challenges. [It] is the hard-earned retirement savings of millions of Australians who have sacrificed current income to provide for their future,” Davison said.
The professional body acknowledged more than 18 million Australians now have superannuation accounts with a total $4.4 trillion in retirement savings. It makes Australia’s retirement savings system one of the largest pension pools in the world and one that helps its citizens afford a decent standard of living in retirement.
In addition, it recognised this money reduces the reliance on the age pension, which also assists in reducing government expenditure.
“Australians contribute to superannuation throughout their working lives on the expectation that these savings will be preserved and maximised for their retirement. Any attempt to treat superannuation as a honey pot for government expenditure risks undermining confidence in the entire system,” Davison stressed.
“If the government is intent on dipping into Australia’s superannuation pool to fund infrastructure projects, it would have to be evaluated like any other investment, be in superannuation fund members’ best interests and maximise returns to boost retirement savings.”
Given Australians are now starting to make significant drawings on their superannuation, with $143.5 billion in retirement benefits accessed in the 12 months to March 2026, the IPA suggested it is a critical time to have stability in the system.
