The Government has released a discussion paper entitled ‘The objective of superannuation’. This paper provides background and questions for consultation on the proposed objective of the superannuation system.
It proposes that the objective of the superannuation system is “to provide income in retirement to substitute or supplement the Age Pension”.
It is likely that the definition will influence Budget decisions relating to tax concessions given to superannuation.
The Financial Services Council has released its proposed definition of the ‘objective of super’: “To deliver dignity and independence for all Australians in retirement by providing replacement income that is adequate to provide a comfortable standard of living.”
There are a number of ways in which the objective of the superannuation system could be enshrined in legislation. This could be in the preamble to a major piece of superannuation legislation, for example the Superannuation Industry (Supervision) Act 1993, or in a stand-alone Act.
Separately the Productivity Commission has released an issues paper inviting submissions on the criteria that should be used to assess the efficiency and competitiveness of Australia’s superannuation system.