Superannuation needs a break from constant political tinkering and ad hoc reviews and reform to rebuild consumer confidence in the system, according to the Association of Superannuation Funds of Australia (ASFA).
The industry should take some time to “to breathe and re-energise after a raft of legislative reform and multiple reviews” as constant change and increased complexity undermined consumer confidence, ASFA chief executive, Dr Martin Fahy said.
Additionally, ASFA said that consumer innovation and use of technology could only develop at pace if the industry was provided with an opportunity for some clear air.
Fahy said Australians were now retiring with significant superannuation balances and ASFA recommended no further adverse changes to be made to super tax provisions or the Age Pension without a holistic review.
“The super industry now needs space to focus on responding to shifting demographics, the changing needs of members and develop its capacity for technological excellence,” Fahy said.
“Over the past decade, we have been inundated with legislative change. Major regulatory reforms have imposed significant implementation and ongoing costs on the industry.
“In addition, every federal budget in recent memory has included superannuation reform and this diverts the industry’s energy and resources into adapting those changes.”
