Essay by Eric Worrall
Australia’s superannuation retirement savings, recently praised by President Trump, could be raided to push forward Net Zero.
As clean energy investment faces headwinds, superannuation could help fill the funding gap
By climate reporter Romy Stephens
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Barriers to investment
Super funds invest in projects that achieve a minimum return to justify the risk and meet regulatory benchmarks, such as the superannuation performance test.
The federal government is currently reviewing the annual test, which was introduced five years ago to protect Australia’s retirement savings and hold trustees to account for underperformance.
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“Renewable energy infrastructure is a younger infrastructure asset and importantly, the policy environment around renewables continues to change.
“As a result, it becomes riskier or is seen to be riskier by many super funds and really needs a different approach.”
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Treasurer Jim Chalmers said the performance test was here to stay and any reforms would not water it down.
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Less than 10 per cent believe Australia is on track to achieve its 82 per cent renewable electricity target by 2030.
“We have high construction costs, particularly for wind; we have long planning processes that take a lot of time and money to work through, we have delays in transmission,” CEIG CEO Richie Merzian said.
“On top of all that, the federal government is now introducing a new capital gains tax on international investors as well, who make up the lion’s share of investors right now.”
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Read more: https://www.abc.net.au/news/2026-07-26/superannuation-renewable-energy-investment-funding-gap/106842116
Australia’s retirement savings scheme involves a mandatory contribution by employers into a saving account which cannot be touched until retirement, not even to prevent bankruptcy. The only exceptions are a medical emergency, if the retirement fund agrees to let you have your own money, or an accident which causes permanent disability. Even after retirement access to the money is restricted, if you take all the money as a lump sum you pay a substantial penalty.
Legally restricted retirement savings are a great idea until they aren’t – they are too tempting target for an inept government which is running short of money.
When Superannuation retirement savings were first introduced, I asked my uncle if he had considered putting some of his investments into a super fund. His reply was “too risky, not enough control”. Sure enough, shortly after this conversation the Keating government launched its first raid on superannuation – replacing a 30% exit tax with a 15% contribution and 15% exit tax. That 15% contribution tax would have caught my uncle if he had followed my suggestion.
Given this precedent of left wing government cash raids, despite Federal Treasurer Jim Chalmers’ assurance the funds will be continue to be protected, I’m not feeling reassured.
Renewables are high risk. They cannot survive without subsidies, and One Nation, which stands a real chance of holding the balance of power after the next federal election, and a small chance of winning outright government, has promised to eliminate renewable subsidies.
The current government has shown a pig headed determination to push Net Zero through no matter what the evidence that its a bad idea. Their recent elimination of tax breaks for capital investment, to make capital investment equivalent to wage income, will have to be offset somehow to get their Net Zero programme back on track, at least to the extent it is possible to get such a programme on track. A raid on retirement savings, recently described by Prime Minister Albanese as a “National Asset”, is the obvious next step.
