The Minister for Revenue and Assistant Treasurer, Senator Coonan, today announced that through the Budget the Government has reaffirmed its election commitments to choice and portability in superannuation.
Choice and portability will benefit Australian workers by creating greater competition in the superannuation industry, resulting in greater efficiency, more responsive investment strategies by trustees and improved value for members. Moreover, the Government believes that workers should have the freedom to decide who manages their superannuation.
The Government has allocated a total of $28.7 million over four years for the ATO to conduct an information campaign on choice and portability and to cover associated administration costs. The campaign is expected to start at least six months prior to the commencement date for choice of funds and will also cover portability of superannuation benefits between funds. Choice will provide new opportunities for members and involves new obligations on employers.
Choice of superannuation fund will be the biggest change to the superannuation system since the introduction of the Superannuation Guarantee. Therefore, it is vital that employers are made aware of these obligations before the commencement of choice of funds.