The Government has passed legislation which will improve the safety of Australians’ superannuation savings, Minister for Revenue and Assistant Treasurer Senator Helen Coonan said today.
Senator Coonan said although the record of safety in Australia’s superannuation system was an enviable one, the changes being implemented under the new legislation would further safeguard these vital investments.
“Protecting the retirement savings of all Australians is a key priority for the Howard Government and today’s amendments are a significant stride toward even safer nest eggs for all Australians,” Senator Coonan said.
“To date, superannuation fund losses resulting from theft or fraudulent conduct are a very small percentage of total superannuation assets.
“These reforms are designed to build on the success of the existing prudential framework and to ensure its continuing effectiveness as our vital superannuation industry develops and evolves.”
Under the legislation trustees of superannuation funds regulated by the Australian Prudential Regulation Authority will be licensed and required to prepare risk management documentation and comply with enhanced reporting requirements to increase the flow of information to APRA. The reforms will be underpinned by appropriate enforcement powers for APRA.
“After the family home, superannuation savings represent the most important asset of Australian households and the licensing of superannuation trustees by APRA is an important step towards further enhancing the safety of those assets,” Senator Coonan said.
The reforms in the Bill were outlined in the Government's response to the recommendations of the Superannuation Working Group (SWG), established by the Government to consider ways of further improving the safety of superannuation. The report of the SWG, together with the Government's response, was released on 28 October 2002.
The SWG consulted broadly in developing its recommendations and the Government has consulted extensively with industry during the development of this legislation.
The reforms to be introduced by the Bill will commence on 1 July 2004, with a two year transition period.