The Federal Government has committed to the central elements of the Cooper Review, endorsing Assistant Treasurer Bill Shorten’s (pictured) earlier adoption of MySuper, SuperStream and other recommendations as Government policy.
Key industry stakeholders received comprehensive briefings on the Government’s approach on Wednesday, with many saying that it contained few surprises and others suggesting that it represented a lost opportunity to inject serious long-term improvement into the superannuation sector.
The Government is scheduled to formally release its response later this morning, but Shorten was saying as early as the beginning of November that the Cooper recommendations would be forming the basis of Government policy.
Implementation of the MySuper proposals are expected to prove most problematic for the Government because of ongoing disagreement about the nature of the initiative and how it should be implemented.
The proposals are also expected to run into difficulties in the Parliament, with the Federal Opposition yet to declare its position but with the Opposition Spokesman on Financial Services, Matthias Cormann, having expressed concern about the default funds under the modern award process.
The Self-Managed Super Funds Professionals Association (SPAA) was among those to welcome the fact that the Government had endorsed the Cooper Review recommendation that no additional investment restrictions be imposed on self-managed superannuation funds. SPAA chairman Sharyn Long also welcomed endorsement of the recommendations covering higher standards for SMSF advisers and consideration of a restricted licence arrangement for accountants providing limited superannuation advice.
“The minimal Government measures announced in response to the Cooper Review for SMSFs are further confirmation that the sector is performing well and does not need significant intervention or overhaul,” she said.
However, she said SPAA was disappointed the Government had rejected a Cooper recommendation to allow the Australian Taxation Office to issue binding rulings in relation to SMSFs.
For its part, the Institute of Chartered Accountants in Australia (ICAA) pointed out that loose ends remained with respect to taxation.
The Association of Superannuation Funds of Australia welcomed the Government’s announcement, but chief executive Pauline Vamos cautioned that “it will be important to focus on good public policy outcomes, as we work with all sides of politics to bring about legislative implementation".
