The SMSF Association has backed the comprehensive package of new superannuation legislation introduced to Parliament last week, affirming the measures will improve accountability and member retirement outcomes for all Australians.
On 14 September, Revenue and Financial Services Minister Kelly O’Dwyer said the Turnbull government was putting super members first by introducing reforms to the $2.3 trillion super system that were squarely focused on protecting members’ money and interests.
The laws include the establishment of the Australian Financial Complaints Authority (AFCA), closing a salary sacrifice loophole, implementing the Superannuation Accountability and Transparency package, and allowing employees to choose their own super fund.
SMSF Association chief executive John Maroney said he commended the government for introducing these reforms into Parliament, all of which have been long advocated by the peak industry body.
“In particular, giving employees their choice of fund is a long-held policy position of the SMSF Association on the basis it introduces an element of competition into the $2.3 trillion super industry,” Maroney noted.
“All employees should have the right to enter the fund of their choice, including an SMSF, when starting new employment, and should not be forced into a fund because of an enterprise agreement or industry award.
“We have also been highly supportive of the move to close the legal loophole whereby employees have been able to short-change their employees of their superannuation guarantee entitlements.”
In addition, he said AFCA, which will combine the activities of three complaint schemes, should prove far more effective in facilitating the resolution of financial disputes.
“From our perspective, we welcome the fact that the AFCA will incorporate the key features of the Superannuation Complaints Tribunal, the Financial Ombudsman Scheme, and the Credit and Insurance Ombudsman, thus providing certainty to all stakeholders,” he noted.
He added it was imperative the super system engage, as far as possible, with all fund members, and this legislation package should prove another step along the way to achieving this outcome.