The Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today released for public comment a consultation paper on the implementation of the Government's portability of superannuation policy.
The Government reaffirmed in the 2002-03 Budget its commitment to introduce
portability of superannuation.
Senator Coonan said portability should commence on the same date as choice of
superannuation fund, on July 1 2004.
"The purpose of this consultation paper is to discuss the Government's approach to implementing portability," Senator Coonan said.
"The Government is committed to consulting widely on this policy, in order to facilitate a well-considered and workable outcome that is acceptable to all stakeholders."
"Portability will give members of accumulation funds the right to transfer benefits from their current superannuation fund to a fund of their choice.
"APRA figures from March this year indicated that there are just over 24 million superannuation accounts in Australia which means there are approximately 2 to 3 accounts for every person who can have an account.
"As a complement to Choice of Funds, this will allow members to consolidate their superannuation benefits in one account, reducing the impact of fees and charges.
"This policy will also benefit Australians by creating greater competition in the superannuation industry, leading to reduced fees and charges and more responsive investment strategies by trustees.
"I strongly encourage members of the superannuation industry and other interested parties to share their views on the issues raised in the consultation paper."
Senator Coonan said the Government's choice and portability policies acted in concert to make superannuation more flexible than ever for Australians saving for their retirement.
"After the family home, superannuation is the most valuable asset many Australians have," Senator Coonan said.
"Accordingly, the Government believes that all Australians should have the freedom to decide who manages their superannuation and the right to move their superannuation benefits from one fund to another.
"Individual Australians are the major stakeholders in the superannuation industry, with funds worth more than $500 billion invested in the system.
"Providing individuals with a stake in managing their own retirement savings will benefit all Australians by allowing them to invest their savings in a fund that best suits their individual needs."
The consultation paper is available at www.treasury.gov.au. A limited number of hard copies are also available from the Treasury by contacting Julie Wallace on 02 6263 3799.
Written submissions will be accepted until 18 November 2002.