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Governance Institute of Australia urges caution in superannuation legislation review

Find out what Governance Institute has put forward in its recent submission to the Senate Standing Committee on Economics.

In a recent submission to the Senate Standing Committee on Economics, Governance Institute of Australia expressed concerns for the proposed Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and related provisions. The submission focused on schedules four and five of the Bill.

In relation to schedule four, Governance Institute supports amendments enabling the Australian Charities and Not-for-profits Commission (ACNC) to disclose information about recognised assessment activities of registered entities in certain circumstances. The submission highlighted that such a disclosure would enhance the ACNC’s regulatory and supervisory roles, thereby fostering public confidence in the charitable sector.

However, the Institute has some reservations about schedule five, particularly around the proposed reduction in the frequency of periodic reviews of the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

Members have expressed concern that the recommendation for biennial reviews, put forward in the Financial Services Royal Commission, has not been given enough time to prove its effectiveness. They argued that reverting to a biennial review cycle after only one review cycle (2023) is premature.

While acknowledging the resource implications and time constraints associated with annual reviews, Governance Institute advocated for maintaining the current two-year interval as the most appropriate. Any extension should not exceed three years.

The submission conveys the importance of thorough consideration and cautious adjustments to regulatory frameworks governing superannuation and financial oversight. It highlights a broader conversation around efforts to enhance transparency and accountability within Australia’s superannuation and charitable sectors.

You can find out more about this submission on the Governance Institute website.

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