SMSF administrator SuperConcepts has launched a campaign to define the objective of the superannuation system and enshrine the objective in legislation in order to bring more stability to the sector and increase the public’s confidence in superannuation.
SuperConcepts chief executive Lara Bourguignon said the likelihood of another inquiry into the retirement incomes system had highlighted the importance of launching the #Time2Enshrine campaign, which aimed to encourage people to voice their views on the purpose of superannuation by using the campaign’s hashtag alongside their comments and posts on social media.
“We know from previous surveys that the constant changes to the super rules are the biggest turn-off when it comes to contributing more to super, which affects retirement income,” Bourguignon said.
“Superannuation is the most tax-advantaged retirement savings vehicle and it’s disappointing these concessions and the advantages of making voluntary super contributions are often overshadowed by the constant fear of rule changes.”
She called for the objective of superannuation to be enshrined in legislation in order to avoid the impact of conflicting policy ideas and the effect this was likely to have on people’s retirement, adding the objective needed to be defined in an aspirational way that encouraged self-provision in retirement.
“We believe the objective of super should portray super not only as a safety net, but also as a vehicle which targets financial independence and a dignified retirement for all Australians,” she noted.
“We believe this objective must be enshrined in the legislation and a mechanism put in place to compel policymakers to refer to this objective when assessing competing super proposals.
“Without this mechanism in place, enshrining the objectives of super would serve little purpose.”
In May, KPMG enterprise director Julie Dolan said any changes to the SMSF sector needed to be aligned with the objective of superannuation.
The SMSF Association has blamed fatigue for the failure of previous efforts by the super industry and federal government to define the objective of superannuation.