ASFA welcomes super reforms

The Association of Superannuation Funds of Australia (ASFA) has welcomed the Reuniting More Superannuation Bill as it improves efficiency and more super being reunited with members. 

The passage of the Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 would allow super funds to voluntarily transfer amounts to the Australian Taxation Office (ATO) in circumstances where the trustee believed it would be in a members’ best interest.  

ASFA deputy chief executive and chief policy officer, Glen McCrea, said: “The flexibility this affords trustees is extremely valuable especially where the trustee holds small residual account balances, arising, for example, from withdrawals made under the COVID-19 early release scheme or low balance fee cap refunds processed after an account has been closed. 

“Improving the flexibility for super fund trustees to transfer balances to the ATO, including low balance accounts, will lead to administrative efficiencies, more super being reunited with members’ active accounts, and reduce the number of multiple accounts.” 

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The association also welcomed the passage of The Hayne Royal Commission Response No. 2 Bill that would ensure ongoing advice fee arrangements would be required to be renewed annually by the client and all services entitled to be received are recorded in writing, important protections for advice recipients. 

MySuper members would also continue to receive advice they needed by allowing non-ongoing advice fees to continue to be deducted from MySuper accounts. 

“Financial advice is important to superannuation fund members as they consider financial decisions both in the accumulation phase and in retirement,” McCrea said. 

“Sadly, not all superannuation fund members are able to pay for financial advice out-of-pocket. It’s pleasing to see that the Parliament recognises that an individual’s superannuation fund account type should not preclude them from accessing, and paying for, worthwhile advice.”