The Association of Superannuation Funds of Australia (ASFA) says there is no further need to “tinker” with the super system and calls for no more adverse changes to be made without a holistic review.
ASFA CEO Dr Martin Fahy said the industry has been “inundated” with legislative change over the past decade, with major regulatory changes imposing “significant” implementation, and ongoing, costs.
“In addition, every federal budget in recent memory has included superannuation reform and this diverts the industry’s energy and resources into adapting to those changes,” he said.
“In circumstances where the lion’s share of funds, time and resource is dedicated to implementing regulatory change, members will inevitably miss out on improved efficiency and service and no stakeholder can be satisfied with this outcome.”
“Constant change and increased complexity undermines consumer confidence in the super system. The community expects a stable system free from constant political tinkering. Australians spend their working lifetime contributing their income to a compulsory system and deserve to be financially confident in retirement.”
“The recent budget changes mean the system is now reasonably equitable and sustainable and there should be no further need to tinker with it.”
Dr Fahy said that greater stability in the super rules will lead to greater confidence, resulting in higher voluntary contributions.
“ASFA recommends no further adverse changes be made to superannuation tax provisions or to the age pension without a holistic review being undertaken in the context of scheduled Inter-Generational Reviews, with the next review due in 2020.”
“The super industry now needs space to focus on responding to shifting demographics, the changing needs of members and develop its capacity for technological excellence.”