The federal coalition has moved to an election footing in the financial services arena, with opposition assistant treasury spokesman Mathias Cormann revealing to Investor Weekly key elements of the superannuation platform it will take to the next election.
While the coalition would not disclose its entire superannuation platform, Senator Cormann outlined a four-point plan he argued would continue to improve efficiency, transparency and competitiveness in the super industry and lead to further improvements in people’s confidence in the system.
“If the current government continues to resist some of the necessary reforms to improve efficiency, transparency and competitiveness of the superannuation industry, [the below points] are some of the things a coalition government would pursue in close cooperation with the industry,” he said.
He said the coalition would:
. Design and implement an open, transparent and competitive process for the selection of default funds under modern awards to replace the current anti-competitive, closed-shop arrangement.
. Improve superannuation governance by ensuring disclosure of conflicts of interests was mandatory, disclosure of directors’ remuneration was in line with the provisions that applied to publicly-listed companies, that there was appropriate provision for independent directors on superannuation fund boards, and that directors who wanted to sit on multiple boards must demonstrate to the Australian Prudential Regulation Authority that they did not have any foreseeable conflicts of interest.
. Ensure appropriate transparency of all processes related to superannuation fund mergers to ensure the interests of fund members were protected at all times.
. Improve the transparency of information available to consumers on all aspects of the superannuation value proposition by developing standard definitions in relation to the reporting of fees, gross and net returns on individual investment options and a common set of definitions for asset classes and investments.
“In our view, this would help drive competition more effectively than designing products through legislation as per the current MySuper proposal,” he said.
“These measures would ensure a level playing field between all types of superannuation funds and present Australian workers with the information and choice they need to select the superannuation products that best suit their needs.”
The coalition has still not given any clear indication as to whether or not it will scrap Labor’s plan to increase the superannuation guarantee from 9 per cent to 12 per cent over the next six years.
Opposition treasury spokesman Joe Hockey indicated in a previous interview with Investor Weekly that the coalition held real concerns that a rise in the super guarantee would put a huge strain on small business and threaten jobs and the take-home pay of many income earners.
