Superannuation Law and Policy (LAWS90239)

Australia’s pool of superannuation savings is the third largest pool of retirement savings in the world, with funds under management exceeding $3.4 trillion. How is this system managed? And what are its politics?

Featuring presentations by senior experts from government, the funds industry and the legal profession, this subject provides a detailed understanding of Australian law and policy, and examines the political economy of Australian superannuation: who it benefits, who it disadvantages, and its design implications.

The subject explains the current form and policy challenges of superannuation in its historical context. Students will learn about the regulatory framework that governs superannuation, including licensing, prudential standards, conduct and disclosure, regulated by the Australian Securities and Investments Commission, the Australian Prudential Regulation Authority, and the Australian Taxation Office. The subject will also examine interaction with other legal regimes including taxation law settings for superannuation, employment law and social security.

Principal topics include:

• History and development of Australia’s superannuation system: why did Labor introduce a privately managed, compulsory system?
• Structure and design of superannuation including defined benefit and defined contribution; types of fund including industry, retail, government funds and self-managed superannuation funds; tensions between choice and defaults.
• The compulsory Superannuation Guarantee (coverage, exceptions and limits) and voluntary superannuation savings for individuals and businesses.
• Regulatory obligations: Licensing, conduct, governance, fees, disclosure and prudential obligations for investment.
• Role of the regulators.
• Introduction to tax policy and law for superannuation contributions, earnings and benefits.
• Interactions of superannuation with the Age Pension and with employment (including employer obligations and prohibitions).
• Analysis of recent and upcoming superannuation reforms including account consolidation; optional insurance; early release of superannuation; home super saver; Your Future, Your Super; Design and Distribution, the Retirement Income Covenant and the National Housing Accord.
• The future and key policy questions for superannuation including adequacy of retirement incomes; gender inequality; home ownership; transparency, investment ‘activism’, and the role of superannuation in the economy.