Government must adopt all Productivity Commission superannuation overhaul recommendations

Article published 10 January 2019

Government must adopt all Productivity Commission superannuation overhaul recommendations

“The recommendations from the Productivity Commission’s inquiry[1] into the efficiency and competitiveness of the superannuation industry should be the blueprint for superannuation reform in 2019”, said CPSA Policy Manager Paul Versteege.

“Particularly in view of the Banking Royal Commission’s interim report, the Government should review its Protecting your Super legislation package currently languishing in the Senate and boost it with all of the common-sense, well-founded recommendations of the Productivity Commission.

“If measures contained in the Government’s Protecting your Super bill are going to be the all this Government will do about super reform, industry snouts will remain firmly stuck in the trough of ordinary Australians’ superannuation savings.

“It’s not enough to consolidate small super accounts and tinker with insurance opt-ins as the Government’s Protecting your Super legislation package does.

“Default super should be workforce entrants’ choice on the basis of an independently and objectively compiled best-in-show shortlist.

“Exit and switching fees for superannuation should be banned as should trailing commissions.

“Insurance offered through super should be fit-for-purpose and claimable.

“Super fund boards should have the skills and knowledge to set the direction of the fund.

“Action should be taken to weed-out badly performing, high-fee funds.”

[1] Superannuation: Assessing Efficiency and Competitiveness.

 

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