On 20 July 2018, Ai Group filed a submission in response to the Productivity Commission’s draft report Superannuation: Assessing Efficiency and Competitiveness.
Ai Group’s submission:
- Firmly supports the objective of improving retirement incomes for superannuation fund members;
- Agrees with the Commission’s identification of unintended multiple accounts and entrenched fund underperformance as two structural flaws in present arrangements which, if addressed, could be expected to substantially boost fund members’ retirement incomes;
- Supports most of the recommendations in the draft report and expresses the view that, if adopted and subject to minor qualifications, they will help improve fund governance, lift average performance levels, assist in improving fund member outcomes, and enhance the regulation of institutional superannuation funds;
- Cautions that some of the Commission’s recommendations would reduce competition, variety and innovation among funds and would undermine the viability of a significant number of high-performing smaller funds many of which offer industry-specific advantages; and
- Expresses support for an approach of short-listing high performing default funds, but, rather than there being only one shortlist of up to 10 funds across the entire economy, high-performing products that are suitable for the industry the employee is entering be included in the shortlist.
If you would like more information about superannuation please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.
Alternatively, if you would like advice regarding superannuation claims in enterprise agreements or unpaid superannuation, please contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Wollongong, Adelaide, Melbourne or Brisbane or email Ai Group Workplace Lawyers at firstname.lastname@example.org.