Super Consumers welcomes the passage of the legislation, which is a significant improvement on the status quo. It will weed out many of the underperforming funds in the system and help consumers find better options for their retirement savings.
“The reforms will also help people save money by keeping their super in one account, putting a stop to multiple zombie accounts. Creating a system which will lead to people having a single, high quality account is a leap forward in improving superannuation for consumers,” says Super Consumers Australia director Xavier O’Halloran.
“The YourSuper fund comparison tool will shine a light on the best products on the market. For the first time, people will be able to compare and easily find a better deal,” says Mr O’Halloran.
“That said, there’s more to be done. We look forward to working with the government on its proposed consultations on extending the performance test to cover more funds and removing inappropriate insurance. It is important all underperforming investment options are captured and people aren’t paying for insurance that doesn’t protect them. Finally, to hasten the pace of improvement we welcome commitments to give APRA a stronger hand to direct mergers, so consumers aren’t left languishing in chronically underperforming funds,” says Mr. O’Halloran
Specifically, Super Consumers will be watching to ensure that:
- The Treasury review into occupational exclusions and restrictions in insurance is a high priority. No one should be stapled to funds that provide insurance that is inadequate for their occupation
- By 1 July 2022, Treasury’s consultation on expanding test coverage is finalised and in effect.
“But the industry doesn’t need to wait for the finalisation of these consultations, it can act now to remove inappropriate insurance and subject their investment options to proper scrutiny. In our eyes failure to do so is a failure to act in the best interests of members,” says Mr.O’Halloran.
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