The legislation to enshrine an objective for superannuation has passed through parliament as part of a flurry of bills approved before the Senate ended its business for the year.
The Superannuation (Objective) Bill 2023 was passed by the Albanese government late last week after it secured the necessary votes to make it law at the eleventh hour during the final day of parliamentary sittings for 2024.
The bill was one of 32 passed through the Senate on 28 November and for the first time legislates an objective for superannuation.
The law will now define the objective of super as “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.
While the bill passed without any amendments, some of the more contentious and broad terms of the objective, such as ‘dignified retirement’, ’equitable’ and ’sustainable‘, were left undebated.
Financial Services Minister Stephen Jones said the bill will strengthen Australia’s retirement income system.
“Any future changes to super legislation must be judged against this objective, making policymakers more accountable when considering changes affecting Australians’ retirement savings,” Jones said.
“The government is committed to protecting and strengthening the super system so it delivers a dignified retirement to more Australians and helps build a stronger and more resilient economy.”
Super Members Council chief executive Misha Schubert welcomed the passing of the bill, noting it would give greater direction around superannuation policy.
“It will be a guiding light for all future super policy development and help to ensure super stays strong and secure,” Schubert said.
“The objective’s wording reflected the views of everyday Australians and reflected clear and compelling purpose in ironclad law.
“The bill safeguards super’s preservation and reminds the current and future parliaments that any policies that undermine it are contrary to the purpose of super.”
Association of Superannuation Funds of Australia chief executive Mary Delahunty agreed, saying: “The law would codify what Australians have come to love about superannuation over the last 30 years – their nest egg.
“It will require members of parliament who consider changes to superannuation to provide a statement of compatibility to explain how the changes uphold the legislated objective, protecting it from the whims of ideology.”