As part of the changes to superannuation, Treasurer Wayne Swan and Financial Services Minister Bill Shorten said they will establish a Council of Superannuation Custodians.
The Council will be set up to ensure that future changes will be consistent with an agreed Charter of Superannuation Adequacy and Sustainability. This has brought hope to many that superannuation will stop being used as a political plaything, and Industry Super has urged the Government to establish the body as soon as possible.
The establishment of the Council has also been welcomed by the FPA and the SPAA. FPA CEO Mark Rantall hopes that this will “remove superannuation from the annual federal budget cycle and the political debate and allow an independent body, similar to the RBA to determine the appropriate policy setting for the super system.” The AFA has called for more detail on the proposed structure of the Council and how it will be convened.
The Charter will be developed against the principles of:
Andrew Conway, Institute of Public Accountants (IPA) CEO, said the IPA was not convinced about the effectiveness of the Charter. “There have been a large number of reviews from systemic taxation reviews to comprehensive superannuation reviews; we are unsure as to how a ‘charter’ will impact on better retirement savings outcomes for Australians.”
Shadow Treasurer Joe Hockey and Shadow Assistant Treasurer Mathias Cormann have released a statement questioning the Government's motives regarding the Council. “So the Labor Party tinker with superannuation then pretends to set up a process to prevent further tinkering,” they said in the statement.
“Australians can be sure that Wayne Swan will be back for more tax grabs from their superannuation accounts sooner rather than later.”
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