The Superannuation (Objective) Bill 2023 that passed Federal Parliament late-November 2024 defines the objective of superannuation as, ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way’.
Other objectives include:
- require Members of Parliament who introduce a Bill which proposes changes to the superannuation system to provide a statement of compatibility which explains how the Bill is compatible with the legislated objective of superannuation and
- require makers of regulations related to superannuation to publish a statement of compatibility which explains how the regulations are compatible with the legislated objective of superannuation.
Key points of the Bill include:
- The requirement to prepare statements of compatibility reflects the requirement in the Human Rights (Parliamentary Scrutiny) Act 2011 in relation to human rights. That Act establishes a Committee to examine Bills and disallowable legislative instruments for compatibility with human rights, and report to the Parliament on its findings. The Bill does not task a committee with oversight of legislative compliance with the objective of superannuation.
- The 2014 Financial System Inquiry proposed legislating an objective for superannuation.
- Following that recommendation, the Turnbull Government introduced the Superannuation (Objective) Bill 2016. That Bill lapsed at the dissolution of the 45th Parliament.
- The 2020 Retirement Income Review revisited the idea of a legislated objective for the broader retirement income system.
- While some stakeholders are very supportive of the proposed legislation, others question the need to legislate an objective for superannuation, many comment on the suggested wording and some query the ultimate utility of the proposed legislation.