5 May 2014

Providing greater stability and transparency in the superannuation system

The Government has decided to defer the start date for the choice product dashboard and the introduction of a portfolio holdings disclosure regime to 1 July 2015.

The choice product dashboard is intended to enable greater comparability of superannuation products, while the introduction of a portfolio holdings disclosure regime will require reporting of specific superannuation fund investments.

The Government remains fully committed to these reforms as part of our efforts to improve the efficiency, transparency and competitiveness of our superannuation system.

Only the most efficient, transparent and competitive superannuation system possible will help ensure that the returns for Australians saving for their retirement are maximised.

However, it has become very clear that the changes to the product dashboard and product disclosure requirements were rushed in without adequate consultation in the dying days of the previous government.

In the course of our consultations on our 'Better regulation and governance, enhanced transparency and improved competition in superannuation’ discussion paper it has become very clear that large parts of the industry are not ready for implementation and that many issues remain unresolved.

To proceed with the original timetable now would force too many industry participants into a state of non-compliance with legal requirements.

Deferring the start date for implementation will enable further consumer testing and determine whether we need to refine the dashboard.

Legitimate concerns have been raised about the practicality of implementing these measures in the required timeframe, as well as the complexities in implementing a portfolio holdings regime.

This deferral will allow sufficient time for consultation on draft legislation and provide industry additional time to implement the changes.

This will ensure that we get these important reforms right.

Public submissions on the discussion paper are available on the Treasury website.