AUSTRALIA - Australia's Labor party will usher in "major" changes to superannuation if it wins this month's election, Nick Sherry, senate candidate for Tasmania and shadow minister for superannuation and intergenerational finance, banking and financial services, has promised.
Speaking exclusively to Global Pensions, Sherry said Labor would start by automatically rolling together superannuation accounts.
“Currently there are six million lost accounts and we want to clean them up,” he said. Sherry stated Labor was also planning to put in place a central clearing house to remove the red tape burden on the employer.
Sherry explained this would “remove a lot of the form filling” for employers and make it easier to implement a default selection in the superannuation scheme.
Further changes will include the introduction of a ‘universal forecast’ to estimate a member’s benefits. Sherry explained without this it was hard for people to plan for their retirement.
Moving on, the senator also said he planned to simplify the lengthy and complex disclosure regime in financial services including superannuation.
“There are often 50- to 100-page documents that are unreadable, we aim to introduce simple standard formatting to reduce the information to two or three pages,” said Sherry.
He said the length of the documents in the disclosure regime rendered them unable to do their job of protecting the consumer.
Asked for his views on the pension system as it currently stands, Sherry said it worked well, but Labor planned to solve the practical problems around superannuation.
Sherry assured Global Pensions contribution rates would remain at 9% if Labor won - an amount Sherry claimed was “sufficient”.
Labor needs to win 17 seats in the election, due to be held on 24 November, to gain control from the governing coalition formed by the Liberal Party and the National Party.
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