3 months ago
16
Washington: US President Donald Trump has praised Australia’s superannuation system and says he is looking “seriously” at adopting a version of it, implying it could be used to help lift the dwindling American birthrate.
Trump made the remarks at an event unveiling an unprecedented $US6.25 billion ($9.5 billion) donation from Michael and Susan Dell, of the Dell technology company, toward the bank accounts of millions of eligible American children.
Michael Dell with his wife Susan and US President Donald Trump at the White House ceremony.Credit: AP
The Dell gift would deposit $US250 to children under the age of 11 whose households earn less than $150,000 a year and who do not receive $1000 in seed funding under Trump’s so-called “Trump Accounts” program.
Part of the rationale for these programs was to offer a sort of “baby bonus” to try to arrest the declining US fertility rate – a prominent concern among the MAGA movement.
When Trump was asked what else the administration was doing to try to lift the birthrate, he appeared to suggest the Australian superannuation system.
“We are looking at programs. There’s a certain Australian plan that people are liking and they’re talking about … not for children, necessarily, but it’s for people, working people,” he said, and turned to look at Michael Dell for confirmation.
Trump said Australia’s superannuation system was a “good plan”.Credit: AP
Another reporter asked Trump to clarify that he meant the Australian retirement savings program, known as superannuation.
“That’s what they’re talking about, yep,” Trump said. “We’re looking at it very seriously. It has worked out very well, it’s a good plan.”
This masthead has asked the White House for further clarification.
The US already has a pension fund system called the 401k, into which employees can voluntarily make payments or opt into automatic payments by their employer.
US Treasury Secretary Scott Bessent with Kevin Rudd at the superannuation summit on February 26.Credit: Michael Koziol
The Australian government and ambassador Kevin Rudd have relentlessly promoted Australia’s superannuation system to American industry, investors and the Trump administration as a source of potential capital.
US Treasury Secretary Scott Bessent attended a special superannuation summit in February at the Australian embassy in Washington, where he said he was impressed by the reliable growth of Australia’s pension funds.
“I was struck by … the confidence that you have in the growth. It’s not what one might expect for Australia,” he said. One would have expected growth to be more dependent on the price of iron ore, he said.
Australia’s superannuation sector manages the fourth-biggest pool of pension funds in the world, and the US is the number one international destination for that capital.
Treasurer Jim Chalmers told the February summit that the super pool was “larger than the capital controlled by the sovereign wealth funds of the United Arab Emirates and Saudi Arabia – combined”.
The amount invested in the US is about $400 billion, and projected to reach $1 trillion over the next decade.
More to come
Most Viewed in World
Loading
