The SMSF Association has thrown its weight behind the superannuation reforms introduced into the Parliament last week, believing they will improve accountability and member outcomes.
The Minister for Revenue and Financial Services, Kelly O’Dwyer, introduced a raft of changes that include establishing the Australian Financial Complaints Authority (AFCA), closing a salary sacrificing loophole, implementing the Superannuation Accountability and Transparency package, and allowing employees to choose their own superannuation fund.
SMSF Association CEO John Maroney says these reforms are a welcome step to ensure the superannuation system delivers better retirement outcomes for all Australians.
“We commend the Government for introducing these reforms into the Parliament, all of which have long been advocated by the Association.
“In particular, giving employees their choice of fund is a long-held policy position of the Association on the basis it introduces an element of competition into the $2.3 trillion superannuation industry.
“All employees should have the right to enter the fund of their choice, including a self-managed super fund, when starting new employment, and should not be forced into a fund because of an enterprise agreement or industry award.
“We have also been highly supportive of the move to close the legal loophole whereby employers have been able to short-change their employees of their Superannuation Guarantee entitlements.”
Maroney says the ACFA, which will combine the activities of three complaint schemes, should prove far more effective in facilitating the resolving of financial disputes.
“From our perspective, we welcome the fact that the ACFA will incorporate the key features of the Superannuation Complaints Tribunal, the Financial Ombudsman Scheme and the Credit and Insurance Ombudsman, thus providing certainty to all stakeholders.”
He says it’s imperative that the superannuation system engage, as far as possible, with all fund members, and this legislative package should prove another step along the way to achieving this outcome.