The Superannuation Minister Nick Sherry has announced another review of the superannuation sector. He believes that after nearly 20 years of compulsory super that it’s time to re-examine the system.
Senator Sherry has made it clear that this review is not looking at the tax aspects of superannuation (we already have the Henry Tax review doing that), but rather this new review will look at “the structure, operation and efficiency of the superannuation system…”.
The following organisations have signed a communiqué committing to the industry review:
- Australian Institute of Superannuation Trustees (AIST) (non-SMSF trustees)
- Australian Superannuation Funds Association (ASFA) (large funds)
- Corporate Super Association (company funds)
- Financial Planning Association (FPA) (financial advisers)
- Industry Funds Network (industry funds)
- Industry Funds Forum (industry funds)
- Self-Managed Super Fund Professionals’ Association of Australia SPAA (SMSF advisers)
- Investment and Financial Services Association (IFSA) (retail funds)
I am concerned that no consumer groups were involved in the communiqué supporting the review, and nor are DIY super (SMSF) trustees directly represented, even though DIY super trustees control one-third of all superannuation wealth. Significantly, the major accounting associations have not participated in the communiqué even though apart from consumer groups, they have the closest contact with Australian consumers via tax strategies and tax returns. Accountants also play a major role in retirement planning, and running DIY super funds.
Although I’m a little fatigued at the number of reviews that Australia’s superannuation system has been subjected to, I am keeping an open mind on this process because the superannuation system does have some structural problems that need fixing. In the June edition of the SuperGuide newsletter, I will outline what I believe are the top 10 problems with the super system.
In the meantime, I suggest the Government consider including one or more of the following organisations and associations in its industry advisory group to better represent consumers:
- Australian Investors’ Association
- Other financial adviser associations apart from the FPA (the FPA supports commission-based advice which is not in the best interests of consumers)
- CPA Australia and Institute of Chartered Accountants
- A representative from one of the financial counselling associations
- Choice (formerly Australian Consumers’ Association)
- One of the seniors associations
In case the industry has forgotten, superannuation exists to build retirement benefits for fund members – Australian consumers.
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