Independent Review – The Treasury
On 6 February 2020, the Government introduced Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020, which seeks to facilitate the closure of Eligible Rollover Funds (ERFs) by 30 June 2021 and enable the Commissioner of Taxation to reunite amounts he or she receives from ERFs with a superannuation fund member's active account.
An ERF is a fund that is eligible to receive benefits rolled over from another superannuation fund without member consent, intended to be a temporary repository for small account balances or for accounts belonging to persons who cannot continue to be a fund member, for instance, when they change employment. However, ERFs have not been successful in reuniting members with lost superannuation.
Consistent with the Government’s Regulation Impact Statement (RIS) requirements, the Productivity Commission Inquiry Report Superannuation: Assessing Efficiency and Competition has been certified by the Treasury as meeting the requirements of a RIS. The Office of Best Practice Regulation (OBPR) does not assess the quality of independent reviews and RIS-like documents used in lieu of a RIS.
The Treasury estimates average annual regulatory costs for businesses at $63,000 and annual regulatory cost savings for individuals at $55,000 for a net cost of $8,000. The OBPR agreed that, as the estimates were less than $2 million per annum, regulatory costs could be self-assessed by the Treasury.
Superannuation: Assessing Efficiency and Competitiveness Productivity Commission Inquiry Report