Chartered Accountants ANZ and CPA Australia welcome this Treasury review into this important topic.

The provision of death and disability benefits within superannuation, including benefits augmented through the use of life insurance products, has been a clear constant design feature of the superannuation system since the funding of retirement benefits first emerged in the early years of British settlement.  This feature is contained within the sole purpose test, at section 62 of the Superannuation Industry (Supervision) Act 1993.  The joint accounting bodies are strong advocates for the maintenance of the status quo with respect to this feature.

MySuper products were initially envisaged to be a safety net for Australians who are unwilling or unable to choose their own superannuation arrangements.  Overall, we believe they have been a good policy initiative, and we are strong advocates for the provision of quality default insurance offerings within MySuper products.

More recent policy initiatives, such as the reduction in the incidence of multiple member accounts and the streamlining of superannuation arrangements when Australians commence a new job, are laudable measures when considered on their own. However, when implemented collectively, they have created unintended consequences, especially for Australians in high-risk occupations.

The joint accounting bodies are concerned about the arbitrary nature of proposed occupational exclusions. Our preferred solution is to ban occupational exclusions.  The presence of occupational exclusions in default insurance offered as part of the MySuper safety net has the potential to exclude Australians from what we believe may be minimum community expectations of basic insurance coverage.