IFSA welcomes super reforms

TheInvestment and Financial Services Association (IFSA)has backed the Federal Government's decision to reintroduce its superannuation surcharge and co-contribution reforms to Parliament.

IFSA chief executive Richard Gilbert says the Government’s commitment to formal reintroduction of both reforms during the winter session are welcome after they appeared in recent budget estimates.

“They will reinvigorate the need for planning and saving for retirement, with a commitment from the Government to assist super fund members and Australian workers along the way," Gilbert says.

The comments come after Assistant Treasurer Helen Coonan’s remarks on the weekend revealing plans to increase the momentum of planned superannuation reforms.

Gilbert called on non-government parties to work constructively to pass the legislation.

IFSA claims the initiatives on fund choice represent an improvement, being simpler, easier to comply with and providing a platform for a measured introduction of choice.

Gilbert says funds allocated for education are welcome.

"What is important here is that this education program begins at the earliest possible opportunity, and that the program as far as possible dovetails the education efforts of all segments of the super industry," he says.

IFSA also welcomed the consultative approach to both portability regulations and super splitting.

“Both areas have complexities that need to be understood so that there are real benefits to superannuation savers and not simply additional costs," Gilbert says.