Objective of super draft legislation imminent: Jones

Speaking in Canberra at the Retirement Conference on Tuesday, Mr Jones said the government has proposed “that the objective of superannuation is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.

“In coming months, we will release draft legislation for consultation before introducing it to Parliament soon after,” he said.

The SMSF sector has argued that the government must first clarify the objective of super before it introduces any other legislation including the proposed $3 million super tax proposal, which is still under consultation.

Mr Jones’ comments at the conference follow the government’s warning to super funds that they must improve customer experience and service and has signalled that this issue is a policy priority after a rise in complaints to AFCA.

He said that enshrining a purpose for the system will provide the government with the ability to deal more harshly with funds that have repeated “underperformance” on customer service.

“There is an opportunity for funds to be more innovative around what products they offer their members in the retirement phase,” he said.

“This is not something they need to wait for the government’s imprimatur on. This is something that they can and should be doing as they serve their members.”

He made broad strokes towards the government’s response to its Quality of Advice Review commenting that the government expected funds to provide advice on their members’ retirement, indicating it will be difficult for them to meet their obligations under the covenant without offering forms of advice.

He concluded by announcing that Your Future Your Super performance test will be extended to choice products later this month.

“The extension of the performance test into the choice sector will scrutinise around 1,000 additional products, representing over $350 billion in assets,” he said.