The Government has every intention of passing reforms to choice of superannuation fund, Minister O’Dwyer has told the SMSF Association National Conference.
Minister for Revenue and Financial Services, Kelly O’Dwyer, told the conference she couldn’t agree more the the belief of the Association that “every Australian has the right to control their own destiny”.
“And, as the Minister with responsibility for superannuation, I ask myself every day, how can we best safeguard and help grow the compulsory retirement savings of the Australian people? How do we empower people with choice and flexibility to ensure their superannuation best meets their individual needs?”
“Unlike those of you here today, many of whom are advisers, there are some Australians who don’t want to personally manage their retirement savings. They want to be able to outsource the management of their retirement nest eggs to experts in the area.”
Minister O’Dwyer noted it was a Coalition government which introduced super fund choice in 2005, and: “perhaps unsurprisingly, the Labor Party is more interested in protecting some of these arrangements for industry funds than affording all those the right to choose their super fund.”
“It is important to remind ourselves that 12 years on from the landmark introduction of choice in super, there are still around two million Australian employees without choice of fund because of their enterprise bargaining agreement arrangements or workplace determinations.”
O’Dwyer said these individuals are “shackled” to super funds they didn’t choose, which prevents them from making decisions about their savings, discourages engagement and limits competition.
“That is why, in March 2016, we introduced a Bill that would allow employees to choose their fund where they are employed under a workplace determination or enterprise bargaining agreement.”
“We estimate that these changes will make it possible for around an extra one million workers to choose the fund that receives their compulsory employer superannuation.
“While the Bill lapsed due to the election, we have every intention of continuing to progress this important reform.”