Make super objective stand-alone Act

The objective of superannuation should be legislated in a stand-alone Act rather than in existing super or tax legislation, the SMSF Association believes.

The SMSF Association said the primary objective for super should be "to provide income in retirement to substitute or supplement the Age Pension, delivering a financially secure and dignified retirement for Australians".

The association's chief executive, Andrea Slattery, said "the objectives of superannuation will influence a number of policy areas including superannuation, taxation, social security, health and ageing".

"Accordingly, the objective should be legislated in a stand-alone Act rather than in existing superannuation or taxation legislation," she said.

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Slattery said she wanted the Government to engage in further consultation on the working of the objective and guiding principles before they become law, and to seek bipartisan support.

The association also said the legislative process was an opportunity to remove super policy from the annual Budget cycle by limiting significant changes only after a comprehensive, long-term review of the system.

"The objective should be based around the provision of retirement income and be supported by a set of guiding principles that can be used to give context to the primary objective," Slattery said.

"It is essential that the objective not only has a focus on providing retirement income, but also ensures that retirees are able to build adequate retirement savings through the superannuation system to manage the financial risks of ageing and retirement."