The federal government will allow some form of multiple pricing for MySuper fund options, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA chief executive Pauline Vamos said Financial Services and Superannuation Minister Bill Shorten will make an announcement in the last week of August that will include some flexibility in the pricing of default super options.
"We have a pretty good idea of what he is going to say in terms of MySuper. We will see some form of multiple pricing," Vamos said.
"We don't know how flexible they are going to be, but they have listened and said: 'We will provide some flexibility.'"
Under the Stronger Super proposals, providers of MySuper funds would initially only be allowed to charge one price per option.
But this would create problems for some providers of corporate super funds, which run their funds on master trusts.
At the moment, providers charge different prices for similar products, depending on the size of the client.
But the Stronger Super proposals did not allow responsible entities to give volume discounts.
Research house Chant West calculated this would mean about 750,000 super members would actually have to pay more when MySuper was introduced.
"We are not sure where the government is going to land, but you will get the competition and you will see an equitable outcome," Vamos said yesterday at an ASFA presentation.
She also said she expected the upcoming government announcement to include a position on life insurance commissions and auto-consolidation.
