Ground swell against portability grows
TheFederal Government’s newly-gazetted regulations on superannuation portability are now likely to be disallowed in the Senate, with the Australian Labor Party (ALP), the Australian Democrats and at least two independents indicating their dissatisfaction.
Under Senate procedures, a disallowance motion can be moved after 15 sitting days, meaning the fate of the portability regulations is likely to be known within the first two weeks of September.
The disallowance motion is expected to follow the tabling of the report by the Senate Select Committee currently enquiring into superannuation portability. The committee was due to report on its inquiry to the Senate at the time of going to print.
With the ALP having already registered its concern about the regulations, much depends on the stance adopted by the Australian Democrats.
However, Democrats spokesman on superannuation Senator John Cherry says the regulation does not encourage portability between inactive accounts and is an attack on members’ current employer-sponsored funds.
“All this regulation does is allow you to take money out of an active account and put it all into another account.”
The disallowance motion is also expected following strong lobbying on the part of sections of the superannuation industry, particularly the public sector funds.
AUTHOR
Jason Spits
Recommended for you
VBP consultant Sue Viskovic has warned advisers thinking of going self-licensed that they need to act “from a business head, not an adviser head” when it comes to scaling up their practice.
An inquiry is due to probe the collapse of Dixon Advisory and its impact on the Compensation Scheme of Last Resort.
A report has highlighted a growing appetite among high-net-worth individuals for private market investments, creating a significant opportunity for advisers.
The two firms have announced a new online development program to support career changers, advice support staff and university graduates in joining the financial advice profession.
