Brough asks industry for choice comment

The financial services industry has been given three weeks by Minister for Revenue and Assistant Treasurer Mal Brough to comment on a consultation paper which will prescribe how the up-coming choice of superannuation fund regulations are implemented.

The paper, released by Brough yesterday, covers areas such as the need for default funds to offer a minimum level of life insurance, the key messages to be included in the standard choice form, the information an employee must give their employer about their chosen fund, and exemptions from the employer ‘kick-back’ rule.

Brough said the standard choice form will provide basic information for employees about choice of funds, and is expected to be no longer than three pages.

“The Government wishes to consult widely on the development of the regulations to ensure that all interested parties have an opportunity to comment,” Brough said.

For Brough, the paper marks his first real re-engagement with the financial services sector since he was re-appointed by Prime Minister John Howard to the assistant treasurer role following last month’s Federal Election.

Due to kick in on July 1, 2005 the choice legislation will apply to about five million workers, many of whom have been using an employer nominated superannuation fund.

The Government will be accepting submissions on the six page consultation paper up until November 30.