Delay in legislation to clarify superannuation objective
The development of legislation to enshrine the objective of superannuation and bring more stability to superannuation policy is likely to be delayed due to the election, according to the CEO of legalsuper.
Speaking with Lawyers Weekly, legalsuper CEO Andrew Proebstl (pictured) said having an agreed objective for superannuation will bring more stability and certainty to lawyers advising on superannuation issues.
"The government believes having an agreed objective for superannuation is critical to securing trust and integrity and increased confidence in the superannuation system as a whole," Mr Proebstl said.
"Having an objective for superannuation will also provide an enduring reference point to guide future decision making by policymakers. This should also provide increased certainty for superannuation fund members and those that provide them advice about their superannuation."
The government announced that it would develop legislation that enshrined the objective for superannuation in October 2015 as part of its response to the Financial System Inquiry.
In March, the government released a discussion paper on the proposed objective for the superannuation system and submissions closed on 11 April.
However, this positive progress could be slowed by the upcoming double dissolution election.
"The government accepted the recommendation of the Financial System Inquiry that the objective of the superannuation system be to provide income in retirement to substitute or supplement the age pension," Mr Proebstl said.
"With the election process now in full swing, it is difficult to predict with any certainty when legislation to enshrine the objective for superannuation may be passed."
He continued: "Both parties have indicated their support for the objective and, at best, legislation could be passed some months after the 2 July 2016 election."
According to Mr Proebstl, the legislation may take superannuation out of the budget cycle and bring more stability to superannuation policy.