The SMSF Association supports all the superannuation reforms introduced to the Parliament last week.
The Government last week introduced legislation to expand choice of super fund, close a salary sacrifice loophole, implement the announced ‘accountability and transparency’ reforms, change the governance of large funds and create the Australian Financial Complaints Authority (AFCA).
SMSF Association CEO John Maroney said the reforms are a welcome step to ensure the super system delivers better retirement outcomes for all Australians.
“We commend the Government for introducing these reforms into the Parliament, all of which have long been advocated by the Association,” he said.
“In particular, giving employees their choice of fund is a long-held policy position of the Association on the basis it introduces an element of competition into the $2.3 trillion superannuation industry.”
“All employees should have the right to enter the fund of their choice, including a self-managed super fund, when starting new employment, and should not be forced into a fund because of an enterprise agreement or industry award.”
“We have also been highly supportive of the move to close the legal loophole whereby employers have been able to short-change their employees of their Superannuation Guarantee entitlements.”
Maroney said the ACFA – which combines the Superannuation Complaints Tribunal, Financial Ombudsman Scheme and the Credit and Insurance Ombudsman – will be far more effective in resolving financial disputes.
He said it’s imperative that the super system engage, as far as possible, will all members, and the legislation introduced should help achieve this outcome.
Aspects of the legislation, in particular the governance and transparency changes, have been strongly criticised by the industry fund sector.