SMSF Association Submission
The SMSF Association welcomes the opportunity to provide this submission in response to the Government’s consultation paper on the proposal to legislate the objective of superannuation. We support in principle the concept of a legislated objective of superannuation. Given the importance of such a measure, the consultation process should not be rushed. We would encourage further formal consultation and extensive stakeholder engagement before proceeding to exposure draft.
The core purpose of superannuation is already addressed in the existing sole purpose test1 and is an essential core component of the superannuation architecture. The sole purpose test is not a new
concept, and its presence and operation substantially pre-dates the Superannuation Industry (Supervision) Act 1993. We acknowledge the important role that the sole purpose test plays in the application of superannuation compliance measures and taxation concessions.
The role of the sole purpose test, whilst of vital importance, must be clearly distinguished from an objective of superannuation. The latter is needed to provide a clear policy framework and guidance.