O'Dwyer recommits to super shake up
Summary: The federal minister responsible for superannuation has reiterated the Government's determination to shake-up the industry super sector. |
Key take-out: Ms O'Dwyer said there were more than 2 million Australian employees with contributions tied to industry funds, and planned changes would open up 'choice' for about 1 million of those. |
Key beneficiaries: Superannuants. Category: Superannuation. |
Minister for Revenue and Financial Services Kelly O'Dwyer has reiterated her defence of the Government's plan to shake up the superannuation sector, including default industry super funds, at the SMSF Association's annual conference in Melbourne.
The comments came after former Reserve Bank governor Bernie Fraser released a report – commissioned by Industry Super Australia and the Australian Institute of Superannuation Trustees – that declared the case for the Government's plan to force independent directors upon non-profit fund boards had not been made.
Caption: Minister O'Dwyer addressing the national SMSF Association conference. Eureka Report
The Minister told the SMSF conference it was "absolutely critical our superannuation industry as a whole has well governed standards of oversight, probity and accountability at its foundation."
"Despite the views of some in the industry that were articulated yesterday, who want to protect particular sinecures, the Government is absolutely committed to better accountability reforms, that will give members an understanding that their superannuation is secure," Ms O'Dwyer said.
On another front, Ms O'Dwyer the Government was committed to providing a workaround for people tied to non-profit funds. She said the Government would resubmit abandoned legislation from March last year that would allow "around 1 million" Australian employees to circumvent enterprise bargaining agreements and workplace determinations to choose their own super fund – whether non-profit, retail or SMSF.
She said there were more than 2 million Australian employees with contributions "shackled" to non-profit funds, and this would open up "choice" for about 1 million of those.
Ms O'Dwyer told the SMSFA conference that the benefits of allowing non-profit fund aligned employees another choice were threefold: allowing choice; enhancing engagement between members and their funds, and promoting competition in the sector.
"We have every intention this year of legislating this very important reform," she said.
Elsewhere at the conference, a panel discussion involving University of Melbourne finance professor Kevin Davis and Fresh Advisory managing director Bernie Rippoll, commented that leaks from Government sources concerning the scrapping of capital gains tax discounts for investment properties were telling, agreeing that the reform would almost certainly be a feature of the May federal budget.