POWERED BY MOMENTUM MEDIA
Super ‘purpose’ guide, not law
The Government has started the process for establishing the purpose of superannuation in legislation but has acknowledged it will not necessarily have any over-riding legal impact.
The almost token status of the superannuation purpose has been revealed in the discussion paper issued by the Treasury at the behest of the Assistant Treasurer, Kelly O'Dwyer, which makes clear that the "purpose" will be utilised by Governments as a "policy guide".
That discussion paper states, in part: "Notwithstanding where the objective is legislated, the purpose of stating the objectives of the superannuation system in legislation is only to guide the policy-making process. It will not affect the interpretation or application of superannuation legislation by the courts."
In releasing the discussion paper, O'Dwyer said the objective "to kick-start the process for meeting the Government's commitment to enshrine the objective of superannuation in law".
"The Government agreed as part its response to the Financial System Inquiry to develop and introduce legislation to enshrine the objective of the superannuation system," she said. "Enshrining the objective of the superannuation system in legislation will provide a guide to policy makers, regulators, industry and the community about superannuation's fundamental purpose."
"Having an agreed objective for superannuation is critical to securing trust and integrity. It is also a means for increasing confidence in the superannuation system as a whole," O'Dwyer said.
The discussion paper references directly the recommendations of the Financial System Inquiry and seeks submissions on whether those recommendations are supported and what the options ought to be.
Recommended for you
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
