The Gillard Government today released the Productivity Commission’s (PC) final report into default superannuation funds in modern awards.
This delivers on the Government’s 2010 election commitment, and reflected its support for the Super System Review recommendation for a review of this matter in 2012 by the Commission.
The Report notes that existing default arrangements have provided market stability with the net returns of default funds of 6.4 per cent compared with 5.5 for non-default funds.
“This report also endorses the Government’s MySuper and financial advice reforms, including the provision of intra-fund advice, which the PC considers important in equipping members with the skills and knowledge to make decisions about their super”, Mr Shorten said.
“The report notes that the disclosure requirements for MySuper products will enhance comparability between products and are expected to improve understanding of superannuation product offerings.”
The Productivity Commission’s recommendations go to the criteria for assessing superannuation funds for inclusion as default funds in modern awards, that members’ best interests should be the primary consideration, that a Superannuation Panel within Fair Work Australia should conduct the reviews and how that process should occur.
“The Government will give careful consideration to the report, and provide a detailed and timely response to the report’s recommendations,” Mr Shorten said.
“I would like to thank Commissioners Mike Woods, Angela MacRae and Paul Costello, and their team for their work in undertaking this comprehensive review and to all parties that participated in the Review process.”
The full report and recommendations can be accessed here: http://www.pc.gov.au/projects/inquiry/default-super/report
Mr Shorten’s Media Contact: Jessica Lindell 0408 642 804