Industry wants simplified super laws
The Australian superannuation industry's two key bodies — the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST) — have supported the concept of a single piece of legislation covering superannuation.
In their submissions to the Cooper Review, both organisations have pointed to the current legislative and regulatory complexity, and the advantages that would flow from a single jurisdiction.
The ASFA submission argues that the current arrangements, under which the Australian Taxation Office (ATO), the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have carriage of the industry, are "being tested".
It said that this testing was particularly in relation to criminal activities, such as illegal early release super, as well as the ability to share information on a timely basis.
However, the ASFA submission warned that bringing the industry under a single piece of legislation might prove constitutionally difficult.
"One centralised piece of legislation, which is specifically tailored for and addresses the particular nuances of superannuation, could be a more effective way to regulate the industry," the submission said. "However, whether it is constitutionally possible to incorporate multiple pieces of legislation into one Act for superannuation is questionable."
Discussing the broad thrust of the ASFA submission, the organisation's chief executive, Pauline Vamos, said the current governance model was working effectively, and this was demonstrated by how successfully the Australian superannuation industry has weathered the global financial crisis, but that the Cooper Review had provided an opportunity to set a framework which reflected changes in fund members’ needs and attitudes.
AUTHOR
Mike Taylor
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