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… Continue reading Legislated objective for superannuation pushed into 2017

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

Australia “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… Continue reading “We must aspire to more” on objective of super, says ASFA

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

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

Allow more time for consultation on objective of super, says SMSFOA

The SMSF Owners’ Alliance has called on the Government to extend the time allowed for submissions in response to the first tranche of superannuation legislation going before the 45th Parliament, particularly on the proposed legislative objective for superannuation. “Allowing just nine days (from 7 September to 16 September) is not sufficient time for public comment on… Continue reading Allow more time for consultation on objective of super, says SMSFOA

Statements of compatibility to be required for objective of superannuation

Statements of compatibility with the objective of superannuation will be required for super legislation and regulations, if the Superannuation (Objective) Bill 2016 is passed as drafted. The Government has released draft legislation for some of the changes to superannuation announced in the 2016 Budget, along with the objective of superannuation. The objective of superannuation, as set out in the… Continue reading Statements of compatibility to be required for objective of superannuation

Bipartisanship on superannuation objective not yet reached

The Coalition and Labor have yet to agree on the objective for superannuation to be put into legislation. The Financial System Inquiry (FSI) recommended that an objective for superannuation should be set out in legislation. This recommendation was adopted by the Government and following a consultation process it settled on the same words as suggested… Continue reading Bipartisanship on superannuation objective not yet reached

Government decides on objective for superannuation

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… Continue reading Government decides on objective for superannuation

Setting an objective for superannuation not enough: Mercer

Simply setting an objective for superannuation is not enough, says consulting firm Mercer. Mercer says that objectives should be set for both superannuation and the age pension, but that the objective for super must state that the purpose is to provide income for life, not simply supplement the age pension. Treasury has been consulting on… Continue reading Setting an objective for superannuation not enough: Mercer

Set objectives for whole retirement system: Actuaries Institute

The Actuaries Institute has called for objectives to be set for the whole retirement system, not just superannuation. The Government has adopted a recommendation of the Financial System Inquiry to set an objective for superannuation. The Actuaries Institute says this should go further, with objectives set for the whole retirement system, including the Age Pension… Continue reading Set objectives for whole retirement system: Actuaries Institute

Objective for super should aim for ‘comfortable’ retirement

The Association of Superannuation Funds of Australia (ASFA) has recommended a legislative objective for superannuation. “A clear and measurable objective will eliminate ambiguity and build trust and confidence between policy makers and the community. It will protect against detrimental changes that erode belief in the system and promote policies that deliver an adequate standard of… Continue reading Objective for super should aim for ‘comfortable’ retirement