Super system needs period of stability, changes as part of five year review

The superannuation system needs a “sustained period” of stability, preferably with changes as part of a rolling five year review process, says the SMSF Association.

The SMSF Association says that the lack of stability in the superannuation system is impeding the efficient deliver of retirement savings outcomes to members.

“The system needs a sustained period of stability free from significant changes, especially changes to taxation settings, to allow members to have confidence in the system and make long-term savings plans,” said SMSF Association CEO John Maroney. Read more...

Productivity Commission wants to hear from SMSF members

The Productivity Commission says it wants to hear from super fund members, including members of SMSFs.

The Productivity Commission has released the issues paper as part of its Inquiry into the Competitiveness and Efficiency of the Superannuation System. This is the third and final stage of the inquiry into the superannuation system, which followed from recommendations of the Financial System Inquiry.

Related: Government starts third and final part of PC super system review

“The sheer size of the superannuation system, with more than $2 trillion of Australian assets, combined with its compulsory nature, highlights the importance of this Inquiry,” said the Productivity Commission. Read more...

Government starts third and final part of PC super system review

The Government has started the third and final part of the Productivity Commission’s review of the efficiency and competitiveness of the superannuation system.

“The Turnbull Government has taken further action to ensure Australia’s superannuation system is as efficient and competitive as possible with the release of the Terms of Reference for the Productivity Commission’s system wide review,” said a joint statement by Treasurer Scott Morrison and Minister for Revenue and Financial Services Kelly O’Dwyer. Read more...

Industry concerned by cost of super system efficiency framework

The Productivity Commission has released its framework for assessing the performance of the superannuation system, though the industry is concerned it could increase costs – which will be passed on to members.

The Productivity Commission has released its report How to Assess the Competitiveness and Efficiency of the Superannuation System, the first of its three-stage review of the super system.

“This first stage provides transparency and certainty to the superannuation industry about how it will ultimately be assessed in our forthcoming review of the system’s efficiency and competitiveness,’ said Productivity Commission Deputy Chair, Karen Chester. Read more...

PC sets groundwork for long-awaited look at super competition and efficiency

The Conversation, Productivity Commission sets groundwork for long-awaited look at super competition and efficiency The Productivity Commission has released its draft report setting out criteria for assessing the competitiveness and efficiency of the superannuation system. The final report will be delivered in November this year.

The study, the first stage of a three-stage exercise, is part of the Government’s response to the 2014 Murray Financial System Inquiry. Murray recommended that the Government “introduce a formal competitive process to allocate new default fund members to MySuper products, unless a review by 2020 concludes that the Stronger Super reforms have been effective in significantly improving competition and efficiency in the superannuation system.” Read more...

A competitive superannuation system: will efficiency gains follow?

The Conversation, A competitive superannuation system: will efficiency gains follow? Productivity Commission Will competition in the superannuation system improve efficiency, or is this an ideological argument extended beyond its usefulness? If more competition would promote efficiency, what design and policy issues need to be addressed to accommodate the changes?

The Productivity Commission’s draft report on superannuation’s efficiency and competitiveness seeks to address whether increased competition will, in fact, drive efficiency, or whether this proposal is ideologically driven by either a belief in the free market or a desire to weaken the role of the unions in industry superannuation funds. Read more...

Productivity Commission doesn’t call for additional SMSF reporting

Productivity Commission, efficiency and competitiveness in the superannuation system, How to Assess the Competitiveness and Efficiency of the Superannuation SystemThe Productivity Commission has not called for additional reporting requirements to be imposed on SMSFs as part of its review of the superannuation sector.

The Government tasked the Productivity Commission with conducting an inquiry into the efficiency and competitiveness of the superannuation system.

The Commission has now released the draft report: How to Assess the Competitiveness and Efficiency of the Superannuation System. The report says: “At this stage, the Commission does not propose any additional collection of information on the SMSF sector to apply the criteria and indicators proposed in this study.” Read more...

Draft super efficiency and competitiveness report released

Productivity Commission, draft report: How to Assess the Competitiveness and Efficiency of the Superannuation SystemThe Productivity Commission has released the draft report: How to Assess the Competitiveness and Efficiency of the Superannuation System.

The Commission says the report includes a “proposed framework to assess the efficiency and competitiveness of Australia’s $2 trillion superannuation system”.

“Our superannuation system is large, complex and has broad reach. This means even small system improvements can offer significant financial benefits to Australian workers, particularly in their retirement.” Read more...

Industry Super welcomes draft Productivity Commission super report

Industry Super Australia, Productivity Commission, draft report: How to Assess the Competitiveness and Efficiency of the Superannuation SystemIndustry Super Australia has welcomed the way in which the Productivity Commission plans to assess the efficiency and competitiveness of the Australian superannuation system, with the release of its draft report.

“Looking after the compulsory super savings of Australians requires funds to be of the highest quality and exhibit undivided loyalty to members. Today’s report identifies that member outcomes, measured by net returns and ultimately how much they have in retirement, have to be the primary focus of a well-designed super system,” said David Whiteley, Chief Executive of Industry Super Australia. Read more...

Super funds focusing on comparisons not long term returns

superannuation funds, investment returns, comparisons, ‘league tables’, Productivity Commission inquiry into superannuation competition and efficiency, submission, CPA AustraliaSuperannuation funds are focussing on appearing favourable compared to competitors rather than on long term returns for members, CPA Australia has claimed.

CPA Australia made the claim in a submission to the Productivity Commission inquiry into superannuation competition and efficiency.

“Many superannuation funds appear to be constructing and managing their asset allocations so they can be compared against their peers on ‘league tables’, creating a focus on short-term investment performance to the possible detriment of long-term retirement outcomes for their members,” says the CPA Australia submission. Read more...