The objective of superannuation
On 9 March 2016, the Assistant Treasurer and Minister for Small Business released a Treasury discussion paper – The objective of superannuation – As part of the process to develop legislation to enshrine the objective of superannuation, in response to the recommendation of the Financial System Inquiry (FSI). In her media statement, the Assistant Treasurer said that “enshrining the objective of the superannuation system in legislation will provide a guide to policy makers, regulators, industry and the community about superannuation’s fundamental purpose”.
Although the Government has accepted the primary objective of superannuation as recommended by the FSI to “provide income in retirement to substitute or supplement the Age Pension”, and proposes to enshrine this objective in legislation, the FSI also recommended the consideration of a number of other factors in supporting the primary objective. Comments on the discussion paper are due by 6 April 2016.
Review into efficiency and effectiveness of superannuation
The Government has released the terms of reference for the first two stages of a Productivity Commission review into the efficiency and competitiveness of the entire superannuation system. Specifically, the Government has asked the Productivity Commission to:
- complete a study to develop criteria to assess the efficiency and competitiveness of the superannuation system
- undertake a public inquiry to examine alternative models for a formal competitive process for allocating default fund members to products.
Initial submissions are due by Wednesday, 20 April 2016.