Super reform not finished – ASFA

Despite the introduction of choice legislation and the abolishment of the hugely unpopular superannuation surcharge, the Australian superannuation industry is still far from perfect, according to the industry’s peak association.

The concern has prompted the Association of Superannuation Funds of Australia (ASFA) to launch a competition calling on entrants to suggest ways for superannuation to be simplified.

“In a sense it’s become riddled by complexity … because of the multiple layers of change that have been introduced over the years, and we would like to see how people think these complexities can be rolled back,” AFSA chief executive Philippa Smith said.

Smith pointed to taxation as a particularly complex area. She also sighted a “raft of grandfathering initiatives” and a “host of administrative areas” as adding further complexity to the system.

ASFA is hoping participants also address a range of issues alongside simplification.

“The number one issue is solving complexity, but the ideas should cover a range of other objectives like increasing the adequacy of people’s retirement savings, raising confidence in superannuation, providing incentives to save, making it equitable to people on different levels, and making it cost effective for funds to run.”

Winners will receive $10,000 worth of prizes, which includes free admission to ASFA’s annual conference.