Industry backs another super review

The Federal Government, backed by a number of industry organisations, is mounting yet another inquiry into the superannuation system, this time into the operational features and efficiency of the regime.

The inquiry was announced by the Minister for Superannuation and Corporate Law, Senator Nick Sherry, with participating industry organisations including the Financial Planning Association, the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees, the Investment and Financial Services Association, Industry Funds Management, the SMSF Professionals Association and the Industry Super Network.

The minister said the terms of reference and details of the inquiry would be released shortly.

Commenting on the move, Sherry said after nearly 20 years’ of compulsory superannuation and the development of numerous new features, the review was timely and appropriate.

The move earned the immediately criticism of the Federal Opposition, with spokesman Chris Pearce claiming the initiative would destabilise confidence in the super regime.

The chief executive of ASFA, Pauline Vamos, said the release of the ministerial communiqué of principles by Sherry was an important step towards reforming policy in the sector. A sustained and efficient super system needs regular systemic analysis, she said.

The Self Managed Superannuation Fund Professionals' Association of Australia chief executive, Andrea Slattery, said the principles set down in the Government communiqué were fundamental to the integrity of the super system, and would “assist Australian consumers to have continued confidence in what is already a very strong system”.