The Self-Managed Super Fund Association is repeating its calls for a "sustained period of stability" in the superannuation system, telling the Productivity Commission that legislative change and speculation is an impediment to an efficient system that can deliver the best retirement savings outcomes for members.
"The system needs a sustained period of stability free from significant changes, especially changes to taxation settings, to allow members to have confidence in the system and make long-term savings plans," SMSF Association chief executive John Maroney said.
"To achieve this critical outcome for the system, it's imperative for the Government to get industry consensus on the objective for superannuation and to remove superannuation from the annual budget policy cycle."
Quoting from the association's submission to the Productivity Commission's Superannuation Issues Paper, Maroney said that when superannuation changes occur at the whim of budget policy, these activities affect the public trust in superannuation that can lead to individuals becoming disengaged with the system.
"They may withhold from making contributions and managing their superannuation savings in the most appropriate way for them (either in an SMSF or APRA-regulated fund) to maximise their retirement benefits," Maroney said.
The association reiterated its long advocated policy of removing superannuation policy from the annual budget policy cycle.
In May, the SMSF Association used its 2017 Budget submission to urge the Federal Government to commit to stability to the superannuation system and resist further changes to the system.
The Association's submission, which also raises issues of housing affordability, infrastructure funding, red tape and how to better integrate superannuation with social security policy, says superannuation underwent significant upheaval following the 2016 Budget and the recent passage of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016.
A May report from SMSF software company Class found about a third (31%) of self-managed super fund members were adversely affected by the 1 July 2017 superannuation reforms.