The Financial System Inquiry (FSI) has recommended important changes to improve some of the anomalies within Australia’s retirement savings system, which encompasses superannuation.
“One of the recommendations is to develop and introduce legislation to enshrine the objective of the superannuation system,” said IPA chief executive officer, Andrew Conway.
“It may be ironic that we have to go backwards to go forward but the IPA believes this is an important step in the evolution of our superannuation system. We need to address anomalies and stop the constant tinkering, which generates distrust in the system,” Mr Conway added.
According to Mr Conway, whilst Australia’s compulsory superannuation system is still relatively young, it is already playing a significant role when it comes to the prosperity of the nation.
“We agree that an updated legislated objective will serve as a guide to future reforms assisting policymakers, regulators, industry and the community about the fundamental purpose of superannuation,” he said.
“At the heart of the objective is the goal to achieve better and sustainable retirement outcomes; however, this should not be open-ended.”
Mr Conway concluded: “Our superannuation system is already doing well in regards to its principle purpose and enshrining its purpose will provide an enduring reference point to guide future decision making by all policymakers, which will go a long way in instilling community confidence in superannuation.”
