ASFA congratulates the Government on its timely response to the 177 recommendations from the Cooper Review. The industry now has greater certainty. There remains a huge amount of work to be done around the implementation of the reforms, says ASFA – the Voice of Super.
“The modernisation of the regulatory framework can now commence. The industry will embrace reforms that deliver better outcomes for consumers pre and post-retirement,” says ASFA Chief Executive, Pauline Vamos.
“This response ties the superannuation industry into the national debate around efficiency and productivity.
“Ultimately, successful implementation of these reforms should raise national savings, address adequacy and create certainty. This is vital for continued public confidence in the system and the industry. The reforms should deliver an industry that is easier and more convenient for fund members to do business with.
“Given the ability to use the TFN as a unique identifier, funds will now be able to identify employees more easily and reduce multiple accounts. The payment system for employers will be more efficient and they will be able to make use of standard forms.
“Fund members will be able to move between funds more easily, through the use of simple rollovers. Enhanced disclosure requirements will give fund members a better understanding of fees and costs.”
MySuper will be implemented from 2013. “It will provide a single investment strategy which will create a vehicle for members to more easily compare important features such as cost, investment performance and the level of insurance coverage,” said Ms Vamos.
“MySuper will provide a ‘ring fence of protection’ for those members who do not want to engage in their super. The reforms will also provide greater transparency of options for those members who choose to take more control of their investment and insurance choices.
“The reforms are about recognising that Australians are not all the same and that all types of members, engaged or disengaged, pre or post-retirement, should receive optimal outcomes.”
The Government, and the industry, have clear expectations that the industry will develop codes and standards, ranging across investment, reporting and data. However, APRA will also be given standards-making powers, which ASFA supports as it will enable the flexible implementation of the greater scrutiny that the industry will be under.
The Government has recognised that SMSFs are a growing segment. Greater consumer protection and wider powers for the ATO were advocated by ASFA, and are also welcome.
In delivering our views to the Government, ASFA embarked on a wide consultative process which sought to build consensus across the superannuation industry. The consultation process undertaken by Minister Shorten and his predecessors has been thorough.
“It will be important to focus on good public policy outcomes, as we work with all sides of politics to bring about legislative implementation.”
For further information, please contact:
Pauline Vamos, ASFA Chief Executive, 0433 169 342
Michelle Dunner, ASFA GM Marketing and Communications, 0412 704 016
Sarah O’Grady, ASFA Communications Co-ordinator, 0410 439 966
About ASFA
The Association of Superannuation Funds of Australia (ASFA) is the peak industry body for the entire superannuation sector. It is the only industry body that represents all types of superannuation funds, service providers and fund members.