Super Update – the objective of superannuation

With consultation now closed on the government’s proposed objective of superannuation, the industry waits for the next steps.

Our May Super Update looks at what the government has proposed to include in the objective and its intention as a yardstick to consider prospective policy changes to the superannuation system. We pose two key questions:

• Should there be a reference to the important role insurance plays in supporting individual members and their families?
• Should the objective be set up in its own Act, with detail on how it is intended to work in the Act’s Explanatory Memorandum?

We also discuss the “Better targeted superannuation concessions” proposals, looking to reduce tax concessions available to people with more than $3 million in their superannuation account balances.

News in brief covers the recent APRA MySuper and Choice product Heatmaps, a delay in the commencement of CPS 230, super thresholds for the new financial year and the latest superannuation statistical publications.

As usual, you will find a legislative update and our handy guide to key changes and their effective dates.