A key recommendation of the Financial System Inquiry was to set a clearer objective for the superannuation system, to address the lack of stability in policy settings.
Speaking at the SMSF Association’s national conference in Melbourne last week, Senator Frydenberg noted the FSI’s preferred model includes enshrining the objectives in legislation and public reporting on how policy proposals are consistent with these objectives.
“My view is that a carefully drafted objective – with bipartisan support – would have positive benefits for the stability and accountability of the system and those who play a role in it,” he said.
“I welcome the recent indication from the shadow treasurer that he also supports a bipartisan approach in this area. The government will have more to say on this issue when it officially responds to the Financial System Inquiry,” he added.
Shadow minister for financial services and superannuation Bernie Ripoll similarly said Labor does not believe superannuation should be an area of conflict between political parties.
“We continue to be prepared to have an open dialogue with the government around any proposed changes to make superannuation more sustainable. And I think this must extend to the industry and all stakeholders,” he said.
The FSI’s chair, former CBA boss David Murray, reinforced the views of the panel on this matter last week also.
If objectives for the superannuation system aren’t firmed up and adhered to, questions over the effectiveness and usefulness of the superannuation system will be inevitable, Mr Murray said.
“If we don’t make some improvements, we will increasingly have to ask the question: would we have been better off without this system? Would people have saved just as much anyway? Would they have invested that wisely themselves, in whatever way they do, and would we have been better off?” Mr Murray said.
