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The Association of Superannuation Funds of Australia (ASFA) has called for the Government and regulators to mandate data standards and provide a stable policy platform that will support investment in systems and processes.
Chief executive of ASFA Pauline Vamos voiced the association’s approval of the Cooper Review SuperStream proposals. Under SuperStream, employers would provide minimum specified information about the member when a contribution is made; the use of Tax File Numbers (TFNs) would be expanded; and funds would be able to verify TFN ownership with the ATO.
“ASFA has long argued that the lost member and unclaimed money issues stem from a lack of accurate information about the member,” said Vamos.
“The proposals provide a solid platform on which to build a more efficient system. To drive these long-term efficiencies, substantial investments in the industry’s plumbing and systems will need to continue to be made,” she added.
Vamos said it was important that the Government and regulators provide a stable policy platform so that this investment could occur without the risk of further changes.
She added that introducing mandated data standards and encouraging the uptake of electronic commerce would improve efficiency and lead to a significant reduction in the cost of processing contributions. She added that the proposal to abolish member benefit protection rules (whereby the administration costs of small accounts are subsidised by others) would also improve equity and encourage account consolidation.
“Importantly, the SuperStream proposals also lay the groundwork for addressing other emerging issues, such as the increasing incidence of identity fraud and illegal early release cases,” she said.
Although supportive of the proposals, ASFA has called on the Cooper Review to consider efficiency and security across the whole super system in its final report.
“ASFA recommendations, such as mandatory naming conventions for self-managed funds, need to be in the final report so there are no gaps in the efficiency and security of the whole system,” said Vamos
ASFA has also urged the review panel to recommend the licensing and prudential supervision of superannuation fund administrators.
