The paper – Better regulation and governance, enhanced transparency and improved competition in superannuation – has been indicated a number of times since the Abbott government came to power and “builds on the government’s election commitment to restore stability and certainty to Australia’s superannuation system”, according to a statement from Senator Sinodinos.
“Good governance in superannuation is critical to securing trust and integrity,” Mr Sinodinos said. “This government is committed to improving superannuation governance which may be aligned with the corporate governance principles applicable to, for example, ASX-listed companies or APRA-regulated entities, such as in the banking and finance industry.”
The consultation will address the MySuper regime and the levels of competition available to members and the issue of default super funds.
“Australians in default superannuation funds should benefit from genuine choice and competition through ensuring any MySuper product can compete freely in the default superannuation market,” he said.
The paper also flags the possibility of deferring the MySuper commencement date beyond 1 July 2014.
Submissions will close on 12 February 2014.
Mr Sinodinos has expanded on the consultation's aim in a discussion facilitated by the Financial Services Council this morning.
“We think more competition and more informed consumers is a good thing,” he said. “Why shouldn't any fund be included in modern awards? What makes people thrive is competition. I think it will lead to better outcomes for the system as a whole.”
