Federal Labor will ensure “financial disclosure documents are simplified and standardised” if it comes to power this year, according to shadow treasurer Wayne Swan.
Speaking in the House of Representatives last week, Swan said the implementation of the Financial Services Reform Act had resulted in “complex super fund offer documents [that] often run to 50 or 100 pages and are often unreadable”.
He described the documents as “yet another example of the Liberal Government’s red tape and policy failure … that has imposed a significant cost and compliance burden on industry and consumers”.
Labor would also be “announcing further measures to reduce regulatory red tape (in the financial services sector) and improve consumer awareness and incentives to save”.
Swan made the proposal during a second reading of the Government’s Tax Laws Amendment (Simplified Superannuation) Bill 2006, as reported in Hansard.
Labor supported the bill as an “improvement to the retirement income of many Australians”, he said, notwithstanding the “fundamental challenges [that] would remain in the super system” after its passing into law.
Another key policy Labor would implement to “overcome these challenges” was a combined pension superannuation forecast in a single standard format.
“Under this system, for the first time, 10 million Australians will receive critical information that will enable them to plan their savings well ahead.
“For example, a 25 year old will get an estimate of likely retirement income at age 60 and 65,” he said.
Labor also proposed introducing a clearinghouse that employers could use to “solve the new compliance burdens that have arisen with the Government’s choice of fund regime”.
“A clearinghouse will allow the employer to pay all contributions to a central distribution point, with employees registering their point of view only once — and removing the 36 decision making steps imposed by the Government’s choice regime,” he said.
