Regulation Impact Statement – Department of the Treasury
On 25 November, the Government introduced legislation to implement a Retirement Income Covenant .
The Retirement Income Covenant will require APRA-regulated superannuation fund trustees to formulate, review regularly, and give effect to a retirement income strategy for the retired members of their fund, and the members of their fund approaching retirement. The Covenant will ensure that these superannuation fund trustees identify and recognise the broad retirement income needs of members of the fund, and build the fund’s capacity and capability to service those needs.
The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Treasury as adequate with the Government’s requirements but not consistent with good practice. The OBPR considers that the policy development process as described in the RIS departs from good practice as it does not have comprehensive consultation on all options or quantification of regulatory costs for each option. More details are provided in the OBPR’s assessment advice (link to below) to the Treasury.
The RIS estimates the average annual regulatory costs at $20.167 million.