The Government met with industry yesterday to address concerns arising from moves to improve the integrity of the superannuation system that particularly affect do-it-yourself super funds, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, said today.
“Yesterday’s consultations involving my office, the Australian Taxation Office, Treasury officials and a broad range of industry players and representatives of the DIY fund sector were extremely constructive,” Senator Coonan said.
“A number of issues were raised including the need for more certainty surrounding the grandfathering provisions in the integrity regulations that were gazetted on May 11 2004.
“Both the ATO and the Australian Prudential Regulation Authority (APRA) have committed to issuing clarifications that outline the conditions of the grandfathering arrangements for those currently offering lifetime and life expectancy pensions in their DIY funds.
“The Government also recognises that there may be some transitional issues that affect people who want to retire and provide a complying pension in their DIY fund before September 20, when the new market-linked pension product will become available.
“I have committed to examining an interim solution for people who may not be able to obtain a complying pension and can’t access the higher Reasonable Benefit Limit (RBL) in the fund, pending the new market linked product coming on stream.
“I thank everybody involved in the consultations yesterday for their constructive approach to working through the issues.
“While it’s important that the integrity of the superannuation system is enhanced, it must not unfairly impinge on people who are genuinely trying to do the right thing and effectively plan for their retirement within the rules.
“I will consider all representations made to my office expeditiously and come to a decision on a way forward that will address industry concerns shortly.”