AIST Submission: Legislating the objective of superannuation

AIST strongly supports both enshrining an objective of superannuation into legislation, and the wording of the objective proposed in this consultation. The proposed wording is clear, concise and covers many fundamental principles against which future changes can be assessed and measured while reinforcing much of the common understanding of the purpose of super.

Given the importance of the objective, AIST strongly supports the release of a detailed Explanatory Memorandum that can provide additional context to the objective, such as clarifying the rationale for the objective, the operation of the objective alongside the existing SIS Act and other legislation, and the intent and interpretation of specific words and principles in the context of the objective.

For the objective to meaningfully deliver on its intended purpose, a mechanism for assessing and reporting on how policy proposals are consistent with the objective will need to be implemented. We recommend a stronger accountability framework than the one proposed.

We recommend the Government move quickly to pass the objective into law to guide the development of other reforms affecting super that are currently under review or announced as proposed changes.