The coalition has called on the federal government to pursue further changes to Australia’s superannuation system if it is to result in a system of increased efficiencies and savings.
Opposition assistant treasury spokesman Mathias Cormann told InvestorDaily the coalition supported changes that made Australia’s superannuation system “more efficient, more transparent and more competitive”.
However, Cormann said the Labor government needed to progress with further change.
“Only with a superannuation system that is as efficient, as transparent and as competitive as possible will Australians receive maximum value from their retirement savings,” he said.
“There are a number of other changes the government must pursue as soon as possible, including ensuring genuine choice and competition in the default superannuation fund market and increased transparency and better corporate governance standards across the superannuation industry.
“I call on Bill Shorten to act immediately to ensure all Australians can benefit from genuine choice and competition in superannuation, including those with default super products.”
The current anti-competitive and closed-shop arrangements through Fair Work Australia were not in the best interests of superannuants across Australia, he said.
His comments come a day after Financial Services and Superannuation Minister Bill Shorten released an industry report that examined the key change under the government’s Stronger Super reforms.
The report, by the Financial Services Council and DST Global Solutions, focused on the impact of the government’s initiative to automatically roll over inactive superannuation accounts with less than $1000 into an active account.
According to the report’s findings, 6.9 million accounts, or a quarter of all accounts, would be consolidated into active accounts after the reform commenced on 1 January 2014.
“This reform will reunite many Australians with lost and inactive super – bolstering their super savings and meaning they can enjoy a more secure and independent retirement,” Shorten said.
“It will also reduce the red tape burden on the industry and mean lower fees for account holders, leaving them with more money to invest in their nest egg.”
FSC chief executive John Brogden said a considerable reduction in the number of accounts would significantly improve the efficiency of Australia’s superannuation system and lead to lower fees for consumers.
The removal of a quarter of all superannuation accounts from the system underscored the appropriateness of the government’s auto-consolidation reform, Brogden said.
