Stop dumping regulatory costs on consumers: ASFA

23 August 2012
| By Staff |
image
image
expand image

The Association of Superannuation Funds of Australia (ASFA) has questioned government's "increasing tendency" to dump regulatory costs on Australian consumers.

It said it appeared government departments were increasingly looking to consumers to wear the brunt of costs.

Government also ignored the direct costs to those entities, according to ASFA, in a submission to the Department of Finance and Deregulation on the Government's cost recovery guidelines. It said further submissions had been raised in regards to Cost Recovery Impact Statements (CRIS) released by AUSTRAC.

It said levies were being put on the public with no supporting material for what public benefit the levy supplied.

"There has been an absence of proper acknowledgment of the direct cost that regulation has already imposed on those entities or due regard for whether the regulation provides a broader public good which is more appropriately funded from consolidated revenue," it said.

ASFA said any charges should reflect the costs of providing the service and should be implemented on a fee-for-service basis, and where required, a levy.

It also said it was important the guidelines did not advocate costs recovery where it was not cost-effective or where it would stifle competition. 

ASFA said it was redundant for an agency to develop a Cost Recovery Impact Statement (CRIS) where it has already compiled a Regulation Impact Statement (RIS) that addresses cost recovery arrangements.

It said a compulsory agency review should be periodic, and at a minimum, every five years.

In a separate submission to Treasury, ASFA requested the Government review the term "lost" to describe disengaged or uncontactable members.

"For those members to be approached and told they are 'lost' causes confusion for the member and reputational damage to the fund," it said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The central bank has served up a disappointment for punters on Melbourne Cup Day....

17 hours 50 minutes ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

22 hours ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

1 day 16 hours ago