Productivity Commission inquiries into superannuation – efficiency, competitiveness, default funds

Productivity Commission has been conducting inquiries into superannuation, including the efficiency and competitiveness of the super system and alternative ways to select default funds.

Productivity Commission’s SMSF findings “fundamentally flawed”

The Productivity Commission’s draft findings on SMSFs are “fundamentally flawed” due to problems with the data, and so shouldn’t lead a recommendation of a minimum balance for SMSFs, says the SMSF Association. The Productivity Commission’s draft findings include that SMSFs with higher balances were competitive with large super funds, but… Read More »Productivity Commission’s SMSF findings “fundamentally flawed”

Shortlist of super funds should replace current default fund system: Productivity Commission

The Productivity Commission is likely to recommend the current system for setting default super funds be replaced with a ‘best in show’ shortlist of funds from which employees would pick a single default super fund for their working life. The Productivity Commission has publicly released its draft report into the… Read More »Shortlist of super funds should replace current default fund system: Productivity Commission

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… Read More »Super system needs period of stability, changes as part of five year review

$94 billion trapped in subscale super funds due to industrial awards: FSC

Up to $94 billion of superannuation savings is “trapped” in small, subscale and underperforming superannuation funds due to the industrial awards system. The figure comes from the Financial Services Council (FSC), which says Fair Work Commission’s default super fund selection process is leaving up to 1.7 million people worse off… Read More »$94 billion trapped in subscale super funds due to industrial awards: FSC

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… Read More »Government starts third and final part of PC super system review

Under-performing super funds should lose default status: AIST

Under-performing superannuation funds should lose their default fund status, the Australian Institute of Superannuation Trustees (AIST) has told the Productivity Commission. AIST told the Commission, in a public hearing into alternative models for setting default super funds, that long-term under-performing default funds should lose that status. AIST CEO Eva Scheerlinck also called… Read More »Under-performing super funds should lose default status: AIST

Industry funds would still top list under Productivity Commission models

Industry super funds are likely to still be favoured under alternative models for selecting default super funds, due to their performance. The Productivity Commission recently released its draft report into alternative models for selecting default super funds. The report has been criticised by Industry Super Australia and other superannuation industry… Read More »Industry funds would still top list under Productivity Commission models