Regulation Impact Statement – Department of the Treasury
On 14 September 2017, the Government introduced the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017, which among other things contains a proposal to require superannuation funds to hold annual members’ meetings (AMMs).
The proposal seeks to increase engagement of members with their superannuation funds and the accountability of fund trustees. Accordingly, the AMMs are intended to discuss the key aspects of the fund and provide members with a forum to ask questions about all areas of the fund’s performance and operations. The requirement gives trustees flexibility over how AMMs are conducted, including through holding virtual meetings.
The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Department of the Treasury as compliant with the Government’s RIS requirements, but not consistent with best practice. The OBPR considers that more evidence was needed to support the case that the recommended option of new Government regulation would improve outcomes for members and therefore deliver a net benefit for the community. The RIS estimates the average annual regulatory costs of the proposal at $14.6m a year. The OBPR has agreed to this estimate.