Merge regulators for simplicity

Merging the major financial services regulators and the abolition of the reasonable benefits limit (RBL) were among some of the answers provided by winners in the Association of Superannuation Funds of Australia’s (ASFA) ‘Simplifying Super’ competition.

The winners of the competition were announced at ASFA’s annual conference in Melbourne, with the three winners being Susan Stephens from BT Financial Services, Paul Collins from Superpartners, and Lucas McKay from BT Financial Services.

Stephens came up with a proposal for a ‘Super Hub’, which focused on centralising contributions and member data, thereby reducing the number of transactions; while Collins came up with a ‘Six Point Plan’ that included taxing at the benefit stage, simplifying preservation, merging regulators, and long-term fee disclosure.

McKay suggested the abolition of RBLs, the simplification of tax components, and fixing tax anomalies.

Commenting on the winners and their ideas, ASFA chief executive Philippa Smith said simplification was a major priority for the superannuation industry in circumstances where layer upon layer of rules had added complexity, confusion and loss of engagement by members.

“The judges looked for ideas that reduced the complexity of super, improved retirement income adequacy, increased national savings, and increased confidence in superannuation, which were equitable, accountable, secure and cost-effective, and, of course, innovative,” she said.

“The strongest entries were those that reduced complexity but were also do-able, as well as adding to the adequacy of the retirement income system,” Smith said.