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The peak super body has welcomed parliament's move to pass the Superannuation Objective Bill.
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Super objective for retirement income finally ‘locked in’, says SMC
02 December 2024
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The Super Members Council of Australia (SMC) congratulated the Senate and government on passing the Superannuation Objective Bill last Thursday.
The bill was introduced into the House of Representatives in November 2023 and would be an important legislative safeguard that had been “a decade in the making.”
Before being introduced to parliament, the idea was first proposed 10 years ago in the Financial Systems Inquiry, followed by the Retirement Income Review in 2020.
SMC said each of those major reviews identified a crucial need for a clear objective in legislation and both of Australia’s major political parties had committed to legislating an objective of super.
“The goal of legislating an objective of super has long held bipartisan and cross-party support, and we congratulate the Senate on passing this important legislation.”
SMC said the legislation would be a “guiding light for all future policy development in super” and strengthen certainty and predictability for everyone who relied on super for retirement income.
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According to the peak super body, superannuation’s purpose had not been legislated in 32 years despite its main function being to deliver income for retirement.
SMC CEO Misha Schubert said the objective’s wording reflected the view of everyday Australians.
“Ask everyday Australians what super is for, and they’ll tell you it’s their money for retirement,” she said.
“The objective of super legislation reflects that clear and compelling purpose in ironclad law. I will be a guiding light for all future super policy development.”
The legislation outlined the role of superannuation in preserving savings to provide income in retirement in an equitable and sustainable way.
SMC said the bill would remind current and future parliaments that any policies that undermined preservation are contrary to the purpose of super.
“We strongly support the legislation. It will help to ensure super stays strong and secure and continues to deliver a financially secure retirement income stream for millions of everyday Australian retirees,” Schubert said.
“An agreed objective of super in law supports more stable, effective and equitable policy settings and reinforces the strong system fundamentals needed to successfully evolve the system.”
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