Super funds warned off government raids

Super not an “ATM” for fiscal challenges

The country’s retirement savings pool, held across more than 18 million accounts, was created to reduce dependence on the Age Pension and ensure financial security for retirees. Diverting those funds to public spending risks damaging trust in the system.

Michael Davison, IPA general manager of advocacy and emerging policy, said Australians had spent decades building their savings and should not be forced to cover rising government costs. “Superannuation is not a ‘national asset,’” he said. “It is not an ATM for governments facing financial difficulties.”

The IPA recognized that funds can invest in infrastructure, but only if those projects are evaluated on the same commercial terms as other assets and remain aligned with members’ returns. Government-backed initiatives would need to meet identical standards.

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Precedent risks long-term security

Workers contribute to superannuation with the expectation that their savings will be protected for retirement. The IPA cautioned that treating these funds as a source for government priorities could weaken that confidence.

“Today it may be sold as a solution to a funding gap,” Davison said. “Tomorrow it could set a pattern for future administrations seeking quick fixes for budget problems.”

In the year ending March 2026, Australians withdrew $143.5 billion in retirement benefits, demonstrating the system’s expanding role in supporting retirees. The IPA argued that using super to address budget deficits could have lasting effects beyond immediate financial concerns.

Davison urged governments to tackle spending issues through better budget management instead of viewing superannuation as an easy funding option. The system was established to help Australians maintain dignity and independence in retirement, and policymakers should uphold that goal.

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Commercial returns must come first

The IPA’s position does not reject infrastructure investment entirely. It demands that any government-backed projects compete on equal terms with private assets, ensuring returns benefit members. “If the government wants to use Australia’s superannuation pool for infrastructure, it must be assessed like any other investment,” the organization said.

Davison stressed that the main objective of superannuation is to grow retirement savings. “Governments should be building trust in the system, not introducing doubt,” he said.

The discussion emerges as some policymakers consider whether the expanding super pool could serve broader economic aims. The IPA’s warning highlights that the system’s reliability depends on its core mission: securing retirement outcomes, not solving budget gaps.