The Australian government has released a consultation paper on legislating the objective of superannuation.
The consultation paper provides context about the history of Australia’s superannuation system, the rationale for enshrining the objective of superannuation in law, and some options on potential framing. It also indicates how a legislated objective could improve accountability and transparency in policy development.
In its consultation paper, the Australian government explained that legislating superannuation’s objective will provide stability and confidence to policymakers, regulators, the industry, and the community.
“It will also ensure members and funds have a shared understanding of the purpose of superannuation throughout both the accumulation and retirement phases,” it said.
The Council of Australian Life Insurers (CALI) – the industry’s collective voice focusing on meeting the needs and expectations of customers, partners, stakeholders, and the community – has welcomed the release of the consultation paper on legislating superannuation’s objective.
In a statement, CALI said Australia’s economy and member outcomes are best served when life insurance underpins superannuation, as many Australians become injured or seriously ill and cannot participate fully in active working life.
“Having insurance in superannuation means that Australians have a safety net when faced with a major illness or disability,” CALI CEO Christine Cupitt said. “Insurance in superannuation can step in to meet their financial need first, which helps to protect superannuation balances and enable a dignified and financially secure retirement.”
The Australian government is seeking stakeholder feedback on framing the draft objective of superannuation, including the benefits of the objective and its practical application. While submissions may be lodged electronically or by post, the Australian government prefers electronic lodgement.
“For accessibility reasons, please submit responses via email in a Word or RTF format. An additional PDF version may also be submitted,” the government said.
“All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.”
You may submit responses to the consultation paper until March 31, 2023. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
