The Government has decided on the legislative objective for superannuation.
The Treasurer announced on Budget night the Government would seek to legislate the following as the objective for superannuation:
To provide income in retirement to substitute or supplement the Age Pension.
This is exactly the same objective as suggested by the Financial System Inquiry. A legislated objective for superannuation was a recommendation of the final report of the Financial System Inquiry.
“This reflects extensive consultations following the recommendation of the Financial System Inquiry,” said a statement issued by the Treasurer on Budget night.
“The Government will embed the objective of superannuation in a stand-alone Act, with an accountability mechanism to ensure that new superannuation legislation is considered in the context of the objective.”
“The subsidiary objectives will be set out in explanatory material to the Act, and the Government will consult on the final form of the legislation. The objective has been an important anchor for the development of the superannuation changes included in the Budget.”
While the Government supported the recommendation of the Financial System Inquiry (FSI) to set an objective for superannuation, it doesn’t appear to be in favour of reporting or measurement on meeting the objective. In addition to simply setting an objective the FSI recommended that the “Government should report publicly on how policy proposals are consistent with achieving the objectives in the long term.”
However this aspect of the recommendation was not included in the questions raised by the discussion paper, and appears unlikely to be included in the legislation.