Greater industry involvement required in super payments standards

Stronger Super legislation before the Parliament today must be amended to ensure the superannuation industry is jointly responsible with Government for development of new standards, says the peak body for the superannuation industry.

The Association of Superannuation Funds of Australia (ASFA) says it is important the development and implementation of data and payments standards for superannuation is done right.

The standards legislation, as it stands, enables the ATO to create standards for business to business transactions but does not require them to consult with business in their development. The only input from industry is proposed to come via an advisory council reporting to the Minister. In effect, the ATO is designing and building a system for participants who have no control over the end product.

ASFA says the legislation should strengthen industry involvement with a statutory body to oversight the development, implementation, review and maintenance of the standards.

“ASFA believes the establishment of a Superannuation Standards Governance Council would result in a better outcome for the industry and fund members,” said ASFA chief executive Pauline Vamos.

“We strongly support the intent of the legislation to improve the efficiency of the payments system but the devil is in the detail.

“The development of an efficient system is the joint responsibility of Government and industry and this should be reflected in legislation.

“We would expect that the establishment of the Superannuation Standards Governance Council and its operational rules would be subject to approval by the Parliament.”

ASFA is proposing the following amendment to the Superannuation Legislation Amendment (Stronger Super) Bill 2012:

1. In Item 2 After 34K(9)

   The Commissioner of Taxation must consult with the Superannuation Standards Governance Council in preparing the superannuation data and payment standards.

2. After item 16

   Section 10(1)
   
   Superannuation Standards Governance Council means a body representing the users of the superannuation data and payment standards and established to oversight the development, implementation, review and maintenance of those standards to the extent that they relate to a superannuation data and payment matter.

For media inquiries, please contact:

Pauline Vamos, CEO, 0433 169 342

Rebecca Glenn, GM Marketing and Communications, 0416 170 439

Megan McDougall, Media and Communications Coordinator, (02) 8079 0849

About ASFA – the voice of super

The Association of Superannuation Funds of Australia is the peak industry body for superannuation and retirement policy and research. ASFA is the only organisation that represents all types of superannuation funds (retail, industry, corporate and public sector) and associated service providers. ASFA members manage or advise on the bulk of the $1.3 trillion in superannuation assets as at September 2011. Its members represent over 90 per cent of the approximately 12 million Australians with superannuation.