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Government plans to name and shame super funds
Poorly performing superannuation funds have been put on notice and could be banned from taking new members’ money under changes flagged under the government’s “Your Future, Your Super” initiative.
Government plans to name and shame super funds
Poorly performing superannuation funds have been put on notice and could be banned from taking new members’ money under changes flagged under the government’s “Your Future, Your Super” initiative.
Under the changes to the superannuation system announced by Treasurer Josh Frydenberg as part of the federal budget, superannuation funds will be forced to meet a minimum standards test with the data to be used in an online comparison tool called Your Super.
In his speech, Mr Frydenberg said cracking down on underperforming superannuation funds will pocket Australians workers $17.9 billion over the next decade.
“Poor performing funds will have nowhere to hide and will be required to notify their members of their underperformance,” Mr Frydenberg said during his budget announcement speech.
The Treasurer also flagged changes for members changing jobs, with the superannuation system not automatically creating a new superannuation account for the employee.
Mr Frydenberg pointed out the $450 million in unnecessary fees members were paying on 6 million duplicate accounts.
“There is now $3 trillion in the superannuation accounts of Australians. Too many Australians are paying too much in superannuation fees,” Mr Frydenberg said.
“At $30 billion a year, the superannuation fees Australians pay exceeds the cost of household gas and electricity bills combined.”
Consumer advocacy group Super Consumers Australia welcomed the Your Future, Your Super reforms announced in the federal budget.
“Overall, the government’s Your Future, Your Super reforms create a better superannuation system for consumers and lift standards across the sector. These reforms will leave more people with more money in retirement,” said Xavier O’Halloran, director of Super Consumers Australia.
Superannuation funds have also voiced their support towards changes in regulations.
“The creation of unintended multiple accounts has been a longstanding problem that has eroded the retirement savings of many Australians through duplicated fees and premiums,” a Rest statement read.
“While the Your Future, Your Super reforms will need further consideration when more detail is available, the government’s proposal to ‘staple’ members to their super accounts is a positive move to address this issue.”
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