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 SMSFs with under $1 million… Continue reading 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 efficiency and competitiveness of the… Continue reading Shortlist of super funds should replace current default fund system: Productivity Commission

Costello says Future Fund could run nationalised superannuation

Former Treasurer Peter Costello has publicly supported having a single national super fund, a move which the superannuation industry says would put savings at risk. Peter Costello, Chair of the Future Fund, was supportive of a single national administrator of super savings, and suggested the Future Fund could do the job, in a speech to… Continue reading Costello says Future Fund could run nationalised superannuation

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… Continue reading 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 in retirement. Analysis by the… Continue reading $94 billion trapped in subscale super funds due to industrial awards: FSC

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… Continue reading Productivity Commission wants to hear from SMSF members

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… Continue reading Government starts third and final part of PC super system review

Vast majority want default super funds to return profits to members

The vast majority of Australians, 91%, believe that default superannuation funds should return all profits to members. This is the finding of a poll by Essential Media, conducted for the Australian Institute of Superannuation Trustees (AIST). AIST CEO Eva Scheerlinck said the poll showed that the public wants a default superannuation system that values members,… Continue reading Vast majority want default super funds to return profits to members

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 for better regulation to help… Continue reading 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 bodies as opening up the… Continue reading Industry funds would still top list under Productivity Commission models