In this guide
- Consultation begins on legislating the objective of super
- Final Quality of Advice Review report released to mixed reception
- Transfer balance cap to increase
- HESTA lobbies government to improve equity in super
- AIST calls for stop to unsolicited calls about super
- Super funds to itemise expenditure on marketing and sponsorships
- ART and AvSuper look at merger
Consultation begins on legislating the objective of super
Thirty years after the introduction of compulsory superannuation, the Federal Government has started the process of legislating an objective for super. The time it has taken to get to this point is an indication of the politically-fraught nature of the undertaking.
Treasurer Jim Chalmers released a consultation paper on 20 February 2023 seeking community feedback on its proposed definition of the objective of super: “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.”
The need for an agreed objective was highlighted during the Covid crisis when the then Coalition government allowed early access to super to help Australians experiencing financial hardship.
For its part, the current Labor government want to allow super funds to invest in nation-building projects “where there is alignment between the best interests of members and national economic priorities”.
Despite its central role in the retirement income system, the government argues there is no agreed objective of superannuation, legislated or elsewhere, to serve as a guide for policy makers, government, regulators, industry, and the wider community.
With $3.3 trillion of retirement savings at stake, generating confidence in the system for generations to come is a top priority.
The consultation paper is available on the Treasury website. Submissions close 31 March 2023.
Final Quality of Advice Review report released to mixed reception
The Albanese Government has released the Quality of Advice Review’s final report, chaired by Michelle Levy. The final report includes many of the recommendations in the interim report, including the controversial proposal to replace the ‘best interests’ duty with an obligation to provide ‘good advice’.
The Review was set up to find ways to make financial advice more accessible and affordable for everyday Australians.
The final report has been welcomed by industry associations but dismissed by many consumer groups, such as CHOICE which said it was a “recipe for another Royal Commission”.
“The radical changes that it recommends will expose consumers to unacceptable risk when obtaining financial advice from a bank or super fund,” CHOICE CEO Alan Kirkland said.
Assistant Treasury and Minister for Financial Services Stephen Jones said when releasing the report that “anyone with an interest in financial advice should read it and make their views known.”
The Financial Services Council (FSC) said the report laid a “strong foundation to ensure many more Australians get the financial advice they need.”
“The final report recommends new consumer protections by expanding what is personal advice and creating a ‘good advice’ duty to ensure advice is ‘fit for purpose’. The move to a ‘good advice’ duty draws on the work of Commissioner Hayne’s Financial Services Royal Commission and would align the advice framework with legal protections in the Australian Consumer Law,” CEO of the Financial Services Council (FSC) Blake Briggs said.
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