The Investment and Financial Services Association (IFSA) and the Association of Superannuation Funds of Australia (ASFA) have praised the Rudd Government's proposal to boost long-term savings after it was revealed that Australian household debt has more than tripled since the 1980s.
The five point plan proposed by the Rudd Government would address inflation by encouraging private and national savings.
Research conducted by the Allen Consulting Group – commissioned by IFSA to gather insight on the trends and implications of Australia’s national savings – identified Australian household saving performance among the worst in the world.
“While household net worth in 2007 increased, in the 1980s the average household owed less than $50 for every $100 in income. In just 15 years, the ratio has tripled to almost $160 in debt for every $100 of income,” said IFSA CEO Richard Gilbert.
“IFSA and ASFA are of the belief that taxation policy settings should not fuel inflation, while at the same time, we need to increase the current rate of private savings,” he said.