ASFA (the Association of Superannuation Funds of Australia) has made the call in a six-step plan to power productivity gains in the super industry post-COVID pandemic.
The body reported it has engaged with Treasury and the government to advocate the changes.
The plan, which has suggested making advice more accessible and addressing issues related to fund mergers, has also asked for more stability in super policy.
“Substantial changes have been made to superannuation legislation and regulation in recent years,” the ASFA report stated.
“Tinkering with policy settings ultimately undermines confidence in the superannuation system and acts as an impediment to trustee strategic planning and the operational efficiency of funds. A period of stability is needed to ensure that recent changes to the superannuation system are properly bedded down.”
ASFA has suggested an RBA-type framework, or a feedback loop, where the health of the super industry is monitored and appropriate changes are made when vulnerabilities are identified.
ASFA chief executive Martin Fahy said in light of current economic challenges, there is a need to develop solutions for problems that will arise after coronavirus.
“This includes creating productivity gains by cutting red tape to reduce the cost burden on industries and the economy,” Dr Fahy said.
“Greater policy stability could be achieved by linking significant policy changes in superannuation to the publication of the [federal government’s five-yearly Intergenerational Report].”
ASFA is a member of the Indigenous Superannuation Working Group, a cross-industry initiative seeking to improve retirement outcomes for Indigenous people.
Other steps in the new six-step proposal included centralising fund data reporting to government bodies such as APRA and the ATO, making it easier for members to make voluntary contributions and to claim tax deductions and changing default fund communications from paper to electronic.
Currently, super funds have to report data to APRA, the ATO, ASIC, AUSTRAC and other government agencies separately, with a need to adhere to different reporting mechanisms, formats and data items, and to deal with inconsistencies across definitions, taxonomy and reporting periods.
ASFA has suggested reporting be filed to a single government agency, which would share data with other government entities. Certain fund data could continue to be publicly available, as is done with APRA.
Its plan has also hinted consideration towards facilitating open data sharing for proof of identity when a new member joins a super fund.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
