The Coalition and Labor have yet to agree on the objective for superannuation to be put into legislation.
The Financial System Inquiry (FSI) recommended that an objective for superannuation should be set out in legislation. This recommendation was adopted by the Government and following a consultation process it settled on the same words as suggested by the FSI:
To provide income in retirement to substitute or supplement the Age Pension
“In other words, it should be used to increase self-sufficiency in retirement, not to accumulate unlimited wealth to be passed on to the next generation,” said Minister for Revenue and Financial Service Kelly O’Dwyer in an address to the Financial Services Council Leaders’ Summit.
“Having a clear, agreed objective will provide greater long-term confidence and policy stability, as well as a yardstick for assessing proposals for policy change.”
Shadow Treasurer Chris Bowen was also supportive of an objective for superannuation, in a speech to the same summit.
“One of the areas where the government and Labor worked productively last term was on a superannuation objective,” he said.
“Having an agreed and simple objective would mean that progress on superannuation could be measured against that objective.”
“It would also mean that new policy ideas could be tested against the criteria of whether they meet that objective.”
However it appears that there is yet to be bipartisan agreement on the objective.
“I note the government put out its own superannuation objective on budget night. This does not reflect an agreed bipartisan objective,” said Mr Bowen.
The Shadow Treasurer said that, prior to the election campaign, the Coalition and Labor has started “good faith” discussions, but “the calling of the election precluded those discussions being finalised”.
“It would be good to have this matter dealt with and to have an agreed, bipartisan legislated objective for superannuation this calendar year.”
“We will be happy to resume these discussions with the government and see us reach an agreement on this ASAP.”