Lack of detail hampering MySuper design
The Federal Government has been taken to task for failing to deliver the necessary detail around MySuper, with the Association of Superannuation Funds of Australia (ASFA) arguing it is hampering the ability of funds to design the new products.
In a submission filed with the Treasury this week, ASFA has pointed out that the exposure draft of the legislation covering the merging of superannuation funds has failed to deal with the mandatory requirement to transfer members and assets to a fund offering a MySuper product.
It said related to the issue, a key component of the MySuper proposals was the mandatory transfer of existing default account balances into the MySuper investment strategy by 2017.
"For a large number of superannuation funds, compliance with this component of the MySuper rules will require the internal transfer of members' money between investment products," the submission said.
It said that while the actual transfer could be delayed until 30 June 2017, decisions about when - in the best interests of members - such transfers should be made were currently being considered as trustees designed their MySuper products.
"The absence of detail on the design of the tax provisions in relation to inter fund transfers and the lack of acknowledgement of the intra-fund transfer issue is complicating the product design task," the submission said.
It said that, on this basis, ASFA would appreciate an early indication from the Government on when the consultation regarding this part of the announcement made by the Government in April would begin and "confirmation that the consultation will also address the intra-fund transfer of investments issue".
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