The Association of Financial Advisers (AFA) remains concerned about recommendations put forward by the Productivity Commission in its final report on Default Superannuation Funds in Modern Awards (the Report) handed down earlier this month, however acknowledges the Productivity Commission’s statement that it has acted independently and was not influenced by the political process.
“We have been reassured by the Productivity Commission statements in a recent senate estimates hearing that they were not influenced by the Minister,” said AFA CEO Richard Klipin.
The Broader Superannuation Debate
The AFA is concerned that, along with the direction of the Report and the recently released MySuper legislation, superannuation policy is heading in the wrong direction.
“We remain concerned about whether Fair Work Australia is the most appropriate body to make decisions on what superannuation funds should be included in Modern Awards,” Mr Klipin said. “We believe that employers should have the flexibility to choose any MySuper fund.”
Mr Klipin said that changes to the superannuation system, as proposed by the MySuper package of bills, also have significant implications for consumers and for the country and it is essential that they meet their stated objectives.
“Ensuring the right outcomes for consumers is critical in this legislation,” he said. “Superannuation is typically a person’s second biggest asset after their home and consumers need confidence that it will be managed accordingly; that the process is fair, that it is transparent and that it safeguards their retirement savings.”
Mr Klipin said ongoing changes to superannuation are creating a great deal of anxiety amongst Australian consumers.
“We need to ensure that any change to the system is change for the better,” he said. “Consumers’ faith in superannuation is flagging and needs to be restored.”