Senate recommended to pass super objective Bill, reporting in IGR

The majority of a Senate committee inquiry into the Superannuation (Objective) Bill 2016 has recommended its passage, though with reporting as part of the Intergenerational Report.

Much of the debate over the Bill had been on the wording of the objective. The committee found there was no consensus on alternative wordings and so is sticking with the original wording: “The primary objective of the superannuation system is to provide income in retirement to substitute or supplement the age pension.” Read more...

Super objective Bill shouldn’t be delayed to serve “vested interests”: Grattan Institute

The superannuation objective Bill should not be delayed to “serve the vested interests” of the superannuation industry, Grattan Institute CEO John Daley has told a Senate committee.

Mr Daley told the committee, which is conducting an inquiry into the Superannuation (Objective) Bill 2016, that the Bill should be passed as drafted. The Grattan Insitute is supportive of the proposed objective, which links superannuation to the age pension. The superannuation industry have called for the objective to be changed to include concepts such as adequacy. Read more...

Essential to include ‘adequacy’ in objective for superannuation

It is essential to include the concept of adequacy in the legislative objective for superannuation, says the SMSF Association.

A Bill to set in legislation an objective for superannuation is currently before the Parliament, the Superannuation (Objective) Bill 2016. However opinion on the objective are divided, with the superannuation industry calling for the objective to include adequacy. However some groups, including the Grattan Institute, support the currently proposed objective:

The primary objective of the superannuation system is to provide 3 income in retirement to substitute or supplement the age pension. Read more...

Objective for superannuation shouldn’t include adequacy: Grattan Institute

The Grattan Institute agrees with the Government that the legislative objective for superannuation shouldn’t include adequacy or the need for a ‘comfortable’ retirement.

The Government is close to setting an objective for superannuation in legislation, following from a recommendation of the Financial System Inquiry. The Bill before Parliament, the Superannuation (Objective) Bill 2016, is currently the subject of a Senate inquiry.

Representatives of the superannuation industry have called the proposed objective fatally flawed, in part due to issues of adequacy, but this is rejected by the Grattan Institute. Read more...

Government’s proposed superannuation objective is “fatally flawed”

The Government’s proposed legislative objective for superannuation is “fatally flawed”, according to Industry Super Australia.

In a submission to the Senate Committee inquiry into the Superannuation (Objective) Bill 2016, Industry Super Australia says that setting an objective as a means to evaluate policy proposals is sound but the objective in the Bill is flawed.

“Among other reasons, the primary objective is flawed because it would not provide a basis for comparing and evaluating future superannuation policy proposals,” says the submission. Read more...

Draft super regs: Fair & Sustainable, subsidiary objectives for super

The Government has released draft superannuation regulations for consultation, including implementation of some of the ‘Fair and Sustainable’ super changes and to set subsidiary objectives for the super system.

The draft regulations, which were released on Friday the 16th of December, include:

  • Defining total superannuation balances
  • Release authorities
  • Lowering the annual non-concessional cap
  • Improving access to tax deductions for personal contributions
  • Implementing the transfer balance cap

This follows from the passage of the Treasury Law Amendment (Fair and Sustainable Superannuation) Act 2016 and the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016 in November.

The proposed regulations would also set the following as the subsidiary objectives of superannuation: Read more...

Proposed objective for superannuation “inadequate and lacks ambition”

The Government’s proposed objective for superannuation, to be set in legislation, is “inadequate and lacks ambition” says the SMSF Owners’ Alliance.

A Senate committee is conducting an inquiry into the Superannuation (Objective) Bill 2016, which would legislate the following as the primary objective for superannuation:

The primary objective of the superannuation system is to provide income in retirement to substitute or supplement the age pension.

The SMSF Owners’ Alliance (SMSFOA) says, in a submission to the inquiry, this positions superannuation as merely having a supporting role for the age pension. Read more...

Legislated objective for superannuation pushed into 2017

It is unlikely that an objective for superannuation will be legislated before the end of 2016.

The Superannuation (Objective) Bill 2016 has been referred to the Senate Standing Committee on Economics for an inquiry. The inquiry is due to report by 14 February 2017.

This contrasts to the inquiry, by the same committee, into the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 – which includes many of the superannuation measures announced in the 2016 Budget. This inquiry is due to report by 23 November 2016, after which the Parliament has five more sitting days scheduled before the end of the year. Read more...

“We must aspire to more” on objective of super, says ASFA

Legislative objective for superannuation, comfortable retirement, adequacy, consultation, ASFAAustralia “must aspire to more” when it comes to a legislative objective for superannuation, says the Association of Superannuation Funds of Australia (ASFA).

“Australia is a wealthy nation and we are proud of our lifestyle, beautiful country and so many achievements. But do we really aspire to the simple view that as many people as possible should be able to enjoy a comfortable lifestyle in retirement? If we don’t, what retirement can people really look forward to?” said ASFA. Read more...

Objective of superannuation sets a “very low bar”, should include adequacy

Legislative objective for superannuation, "The primary objective of the superannuation system is to provide income in retirement to substitute or supplement the age pension."The Government’s chosen objective of superannuation has been criticised as not going far enough, particularly in terms of adequacy.

Draft legislation was recently released which includes:

The primary objective of the superannuation system is to provide income in retirement to substitute or supplement the age pension.

The Financial Planning Association of Australia (FPA) says this primary objective “sets a very low bar”.

“The FPA agrees that provision of income is an important objective of the superannuation system. However, we believe the bar set in the draft legislation – providing income to substitute or supplement the age pension – is too low.” Read more...