Reforms introduced into Parliament last week will improve the accountability of those in the superannuation industry and drive better outcomes for members, according to the SMSF Association.
The superannuation reforms introduced, which included the establishment of the Australian Financial Complaints Authority (AFCA) and the implementation of the Superannuation Accountability and Transparency regime have been backed by the SMSF Association, and touted a ‘welcome step’ by chief executive John Maroney.
“We commend the Government for introducing these reforms into the Parliament, all of which have long been advocated by the Association,” he said.
“We welcome the fact that the ACFA will incorporate the key features of the Superannuation Complaints Tribunal, the Financial Ombudsman Scheme and the Credit and Insurance Ombudsman, thus providing certainty to all stakeholders.”
Maroney said other outcomes of the reforms such as the close of the salary sacrificing loophole and allowing employees to choose their own super fund would allow for a stronger accumulation phase and better transition into retirement.
“All employees should have the right to enter the fund of their choice, including a self-managed super fund, when starting new employment, and should not be forced into a fund because of an enterprise agreement,” he said.
“We have also been highly supportive of the move to close the legal loophole whereby employers have been able to short-change their employees of their superannuation guarantee entitlements.”
Maroney said the reforms were the first step toward full super system engagement with members.
