The Tax Law Amendment (Simplified Superannuation) Bill 2006 was tabled in the House of Representatives yesterday and was applauded by a industry bodies and fund managers.
Bipartisan support to simplify and streamline superannuation will provide needed stability and certainty in the Australian system, IFSA chief executive Richard Gilbert said.
"Polling of consumers shows that legislative 'risk' or fear of constant legislative change by those saving for their retirement is a clear and current issue, so bi-partisan support for this package is warmly welcomed," Gilbert said.
"The smooth passage of this package now means that our retirement savings system can deliver improved retirement incomes and increase incentives to save and work."
Recent research commissioned by the Association of Superannuation Funds of Australia highlighted scepticism by some consumers as to whether the super changes are here to stay.
"The introduction of this bill, together with Labor support for the changes, will hopefully reassure many Australians that the changes will remain," ASFA chief executive Philippa Smith said.
Describing the current system as, "Byzantine and a labyrinth of complexity," Gilbert said the new legislation will simplify the existing tax structure and restrictions that apply to superannuation benefits.
"This legislation addresses many of the issues and concerns raised by IFSA during the consultation process," Gilbert said.
BT chief executive Rob Coombe said the changes would completely revolutionise investors' view of super.
"Simplification of the super rules will lead to greater engagement and I believe that it will encourage Australians to save more through super," Coombe said.
