Trump Administration Proposes Adult Retirement Accounts Modeled on Australian Superannuation

President Donald Trump said his administration is drafting tax-favored retirement accounts for adults that would mirror Australia’s mandatory superannuation system. The plan would extend the children-focused “Trump Accounts” by adding employer contributions to adult accounts, pending congressional approval.

Washington Examiner

Idea follows the 2023 launch of “Trump Accounts” after a $6.25 billion donation from Michael and Susan Dell. Trump cited Australia’s model in December. Proposal arrives as Social Security trustees warn of a 22 percent benefit cut by 2032 without reform.

The Hill

Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Senator Ted Cruz (R-TX) frame the plan as a path to Social Security privatization. Speaker Mike Johnson (R-LA) urges Republican action. Australia mandates a 12 percent employer contribution; trustees project a 22 percent benefit cut by 2032 if unchanged. Employer-matched contributions remain voluntary.

The Hill

White House confirmed Treasury and Commerce officials are drafting proposal but declined to say if proposal would adopt Australia’s 12 percent rule. Trump stressed the plan’s popularity and its fit with “things that people really like.” Speaker Johnson highlighted Social Security’s urgency; Republicans cite privatization as cost-saving, while Democrats favor revenue-raising reforms.

The Hill

Policy analysts warn employer contributions could raise business costs and shift retirement risk to managers. Democrats favor revenue-raising reforms, while Republicans promote privatization as a cost-saving measure. Critics note the lack of detailed legislative language.

The Hill

Sources differ on whether the U.S. plan will replicate Australia’s 12 percent mandate or a version. No timeline, funding source, or eligibility criteria have been disclosed, and White House officials have not clarified details.

The Hill

• “We’re looking at that very strongly. We’re going to be taking that, and we’re going to be maybe making it a little bit sharper, a little bit even better. But we’re going to be doing that.” — President Donald Trump, President of the United States

Fox Business (website)

• “It’ll be also, I think, very popular, and I guess the best definition is they have a plan in Australia, which people really like,” — President Donald Trump, President of the United States

Washington Examiner

• “We’re going to be able to go to parents and say, ‘Hey, you know that Trump Account your kid has that you keep seeing the numbers go up and you’re seeing this compound growth, wouldn’t you like to be able to keep a portion of your tax payments that you’re paying already, and instead of sending it to Uncle Sam, wouldn’t you like to have a Trump Account just like your kid does?’” — Senator Ted Cruz, U.S. Senator from Texas

Washington Examiner

• “really worked out very well, incredibly well, and very respected.” — President Donald Trump, President of the United States

The Hill

The administration plans to discuss the proposal with Congress in the coming weeks.

The Hill