Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 27

Implementation is a hot issue

It is often said, “Take care of the big issues and the smaller ones will fix themselves.” The role of the superannuation pool in the economy and the evolution of the super system are clearly complex and important conversations to start now and continue over the longer term. Much information (for example the ASFA White paper on evolving the system) contributes to the depth and effectiveness of these conversations. When we embark on these conversations we need to have regard to the environment both now and in the future.

But there is another conversation that is going on at this time, and that is the challenge of the implementation of Stronger Super and FOFA regulatory reform. Many of you will immediately cease reading this article on the basis that such a conversation is too technical and detailed or just not sexy enough.

I have news for you – implementation is a hot issue! It is filling the minds, the time and devouring resources across the industry. We have so much to implement, in so little time and without a full picture of the regulatory framework, that nervousness pervades our daily lives. ASFA recently embarked on an exercise to centralise and document all the implementation issues across Stronger Super (ASFA does this work so that the industry does not waste member’s money by duplicating non-competitive activities).

We came up with three tables. The first table outlines issues that need an adjusted policy setting because the regulatory outcome is unworkable - there are 13 of those. The second table outlines gaps or mistakes in the legalisation - there are also 13 of those. The third table outlines all the issues where there is interpretive confusion or the need for further guidance – again the magic number is 13. We of course have outlined what the solution is and which body or regulator should fix it. The fixes fall on the shoulders of ASIC, APRA, Treasury, parliament and the ATO. Often it needs two bodies or two regulators to fix an issue.

The tables reflect a point in time and the list grows weekly as funds and super providers implement and engage with the detail, and as such the tables will change and in the end hopefully disappear.

What we have asked for and what we need is a pragmatic and open approach to implementation by regulators. We have called on all of them to provide written public statements so that the industry can manage costs as well as risks. There are different implementation issues across disclosure, SuperStream, data collection and MySuper and in many cases there are good reasons to delay implementation based on risk alone.

This cry is not about shirking our responsibility to fund members: this cry is about being able to implement with the best interest of members in mind, not a regulatory stick!

But there is a silver lining. We have seen a level of collaboration across the industry that is unprecedented and I have no doubt that this collaboration will be built upon over the coming months and years.

 

Pauline Vamos is Chief Executive Officer of the Association of Superannuation Funds of Australia (ASFA).

 


 

Leave a Comment:

RELATED ARTICLES

How to fix the Commonwealth Superannuation Scheme

Jeremy Cooper on super becoming too big

How a sidecar can keep super motoring along

banner

Most viewed in recent weeks

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Latest Updates

Superannuation

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

Superannuation

Less than 1% of wealthy families will struggle to pay super tax: study

An ANU study has found that families with at least one super balance over $3 million have average wealth exceeding $19 million - suggesting most are well placed to absorb taxes on unrealised capital gains.   

Superannuation

Are SMSFs getting too much of a free ride?

SMSFs have managed to match, or even outperform, larger super funds despite adopting more conservative investment strategies. This looks at how they've done it - and the potential policy implications.  

Property

A developer's take on Australia's housing issues

Stockland’s development chief discusses supply constraints, government initiatives and the impact of Japanese-owned homebuilders on the industry. He also talks of green shoots in a troubled property market.

Economy

Lessons from 100 years of growing US debt

As the US debt ceiling looms, the usual warnings about a potential crash in bond and equity markets have started to appear. Investors can take confidence from history but should keep an eye on two main indicators.

Investment strategies

Investors might be paying too much for familiarity

US mega-cap tech stocks have dominated recent returns - but is familiarity distorting judgement? Like the Monty Hall problem, investing success often comes from switching when it feels hardest to do so.

Latest from Morningstar

A winning investment strategy sitting right under your nose

How does a strategy built around systematically buying-and-holding a basket of the market's biggest losers perform? It turns out pretty well, so why don't more investors do it?

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.