Key measures to provide Australian workers with a safer superannuation system were introduced into Parliament today in the Superannuation Safety Amendment Bill, the Minister for Revenue and Assistant Treasurer Senator Helen Coonan said today.
"Protecting the retirement savings of all Australians is a key priority of the Government and these reforms will help make super safer than ever," Senator Coonan said.
"We must have an environment in which people are motivated to plan and save with confidence and we must work to increase simplicity and security in our superannuation system."
The Bill requires trustees of superannuation funds regulated by the Australian Prudential Regulation Authority to be licensed, the preparation of risk management plans and enhanced reporting requirements to increase the flow of information to APRA.
"The importance of increasing public confidence in the super system is paramount and these reforms to improve the safety of superannuation are an important plank in building the confidence of Australian workers in the super system," Senator Coonan said.
"After the family home, superannuation savings is the most important asset of Australian workers and the licensing of superannuation trustees by APRA is an important step towards further securing the safety of those assets."
The Government consulted extensively with industry during the development of this legislation and an exposure draft was released for comment in May this year.
"Reforms contained in the Bill will commence on 1 July 2004, with a two-year transition period to allow industry sufficient time to prepare for these important improvements," Senator Coonan said.
A number of the reforms in the Bill will be underpinned by regulations, including operating standards. The Government will consult with industry on the details of the regulations and operating standards prior to their finalisation.
Draft regulations and operating standards will be made available in the next two weeks on the Department of Treasury web site ( www.treasury.gov.au).
The Department of Treasury will conduct consultations with industry and written submissions can be made before 29 February 2004 to:
The Manager
Prudential Policy - Superannuation and Insurance Unit
The Treasury
Langton Crescent
PARKES ACT 2600
or by e-mail to: ssab@treasury.gov.au